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The bases to be used in allocating expenses, together with other information, are as follows: a. Advertising expense-incurred at headquarters, allocated to divisions on the
The bases to be used in allocating expenses, together with other information, are as follows: a. Advertising expense-incurred at headquarters, allocated to divisions on the basis of usage: Winter Sports Division, \$450,000; Summer Sports Division, $508,000. b. Transportation expense-allocated to divisions at a rate of $14 per bill of lading: Winter Sports Division, 14,000 bills of lading; Summer Sports Division, 15,400 bills of lading. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your interim calculations. Championship Sports Inc. Divisional Income Statements For the Year Ended December 31, 20Y9 Champlonship Sports Inc. Divisional Income Statements For the Year Ended December 31, 20Y9 Championship Sports Inc. Support Department Allocations For the Year Ended December 31, 20 Y9 Advertising expense Transportation rate per bill of lading Number of bills of lading Transportation expense Accounts receivable collection rate Number of sales invoices Accounts receivable collection expense Warehouse rate per sq. ft. Number of square feet Warehouse expense $WinterSportsDivisionSummerSportsDivision$Total $ $
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