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TB MC Qu. 12-43 Management of Wee Ones (WO), an... Management of Wee Ones (Wo), an operator of day-care facilities, wants the company's profit to
TB MC Qu. 12-43 Management of Wee Ones (WO), an... Management of Wee Ones (Wo), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data: Center Downtown Irvine H. Beach Totals Budgeted Actual Budgeted Actual Revenue Revenue Direct Costs Direct Costs $ 510,000 $378,400 $ 323,400 $ 329,700 765,000 602,000 554,400 502,400 425,000 739,600 662,200 737,900 $1,700,000 $1,720,000 $1,540,000 $1,570,000 wo's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $73,000 Assume that management used the allocation base that is most influenced by advertising effort and consistent with sound managerial accounting practices. How much advertising would be allocated to the Irvine center? Multiple Choice $50.377 $32.850 $24,333 $36.500 $24,287
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