Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tiny Tots Transit has 3 operating divisions - Cam, Nate and Ash. Corporate headquarters in Tuscaloosa incurs $3,500,000 per period which the company considers as

image text in transcribed

Tiny Tots Transit has 3 operating divisions - Cam, Nate and Ash. Corporate headquarters in Tuscaloosa incurs $3,500,000 per period which the company considers as an indirect cost of the operating divisions. You, the Controller of Tiny Tots, have been asked to prepare a report that allocates the corporate headquarters using several different basis. Using the following information, calculate the operating margin of each division after allocating corporate headquarters costs on a Revenue, Direct Cost and number of employees basis. Please show all calculations. CAM NATE ASH Revenues Direct Costs Segment margin Number of employees 10,400,000 6,800,000 3,600,000 2500 8,400,000 5,760,000 2,640,000 1500 5,450,000 4,954,000 496,000 1000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 2

Authors: Hanlon, Hodder, Nelson, Roulstone, Dragoo

2nd Edition

1618533134, 9781618533357

More Books

Students also viewed these Accounting questions

Question

Summarize various training methods.

Answered: 1 week ago

Question

Explain the metrics for evaluating training and development.

Answered: 1 week ago

Question

Identify career planning approaches.

Answered: 1 week ago