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Score Problem (10 points). MANAGERIAL ACCOUNTING HANDOUT PROBLEM 6 Name Section Carambola Clothing operates four clothing stores and allocates headquarters' costs based on the arithmetical
Score Problem (10 points). MANAGERIAL ACCOUNTING HANDOUT PROBLEM 6 Name Section Carambola Clothing operates four clothing stores and allocates headquarters' costs based on the arithmetical average of three different factors. CARAMBOLA CLOTHING FACTORS USED TO ALLOCATE HEADQUARTERS' COSTS FOR CURRENT YEAR (1) Percentage of payroll dollars in each store to the total payroll dollars for all stores. (2) Percentage of sales dollars in each store to the total sales for all stores. (3) Percentage of the average gross book value of tangible assets of each store to the total book value of tangible assets for all stores. The company has headquarters' costs of $400,000. The relevant information for the stores is attached. REQUIRED: Using the attached forms, determine the amount of headquarters costs that should be allocated to cach store. Show all appropriate computations. Round all percentages calculated for the allocation of costs to three decimal places. Round the calculations for the dollar amounts allocated to the nearest whole dollar.
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