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Randy Fashions, Inc. operates with three divisions, A, B, C Division A produces revenue of P 1,200,000 for the year Division B produces revenue of
Randy Fashions, Inc. operates with three divisions, A, B, C Division A produces revenue of P 1,200,000 for the year Division B produces revenue of P 700,000 for the year Division C produced P 600,000 The total cost for the year for each division are: Materials, labor & other direct costs Allocated company's costs A 680,000 200,000 B 720,000 200,000 480,000 200,000 Total 1,880,000 600,000 Total costs 880,000 920,000 680,000 2,480,000 a List the costs by division that can be directly attributed to that division b Do all three divisions provide an amount over their direct costs to the total operation? Identify any division that does not. c Is there any division that covers direct labor costs but does not bear its full shares of cost of the total operations? Identify that division, if any d Which division(s) can bear all of its share of the allocated costs
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