AC2720_Exercise 4.1_Template

# AC2720_Exercise 4.1_Template - Sales Location Allocated...

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Problem 1 Direct and step-down allocation Part 1:

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Problem 2 Allocation of common costs

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Problem 3 Allocation of c Part 1 a: Davenport’s method based on number of cars sold: Sales Location Percentage (1) (2) (3) = (2) ÷ units East West North South Part 1 b: Stand-alone method Sales Location Percentage (1) (2) (3) = (2) ÷ units East West North South Part 1 c: Incremental method (locations ranked in order of largest advertising dollars to smallest adv

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Unformatted text preview: Sales Location Allocated Cost East West North South Part 2: Number of cars sold Stand Alone Cost Cost Remaining to Allocate common costs Joint Cost Allocation (4) (5) = (3) × (4) Joint Cost Allocation (4) (5) = (3) × (4) verTsing dollars):...
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