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Scott's Markets, Inc., has three grocery stores in the metropolitan New York City area. The company allocates ceentral costs using sales as the cost-allocation base.
Scott's Markets, Inc., has three grocery stores in the metropolitan New York City area. The company allocates ceentral costs using sales as the cost-allocation base. The following are budgeted and actual sales during November: Central costs of $165,000 are to be allocated in November. Requirements 1. Compute the central costs allocated to each store with budgeted sales as the cost-allocation base. 2. Compute the central costs allocated to each store with actual sales as the cost-allocation base 3. What advantages are there to using budgeted rather than actual sales for allocating the central costs
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