Problem_14-17_Solution

Problem_14-17_Solution - 14-17 (15 min.)Allocating costs to...

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Unformatted text preview: 14-17 (15 min.)Allocating costs to divisions. 1. Allocations based on square feet.RefrigeratorStoveDishwasherMicrowave OvenTotal1. Square feet130,00090,00080,00010,000400,0002. % square feet(130,000; 90,000; 80,000;10,000 400,000)32.5%22.5%20%25%100%3. Allocated headquarter cost(Row 2 $14,255,000)$4,632,875$3,207,375$2,851,00$3,563,750$14,255,000RefrigeratorStoveDishwasherMicrowave ovenTotalSegment margin$5,200,000$8,400,00$5,300,000$3,560,000$22,460,000Less: Headquarter costs4,632,8753,207,3752,851,0003,563,75014,255,000Division margin $ 567,125$5,192,625$2,449,000$ (3,750)$ 8,205,000Division margin Revenues5.2%27.6%21.3%(0.06)%17.1Allocations based on segment margin.RefrigeratorStoveDishwasherMicrowave OvenTotal1. Segment margin$5,200,000$8,400,00$5,300,000$3,560,000$22,460,0002. % segment margin $5,200000; $8,400,000; $5,300,000; $3,560,000 $22,460,00023.15%37.40%23.60%15.85%100%3. Allocated headquarter cost(Row 2 $14,255,000)$3,300,033$5,331,37$3,364,180$2,259,417$14,255,000...
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Problem_14-17_Solution - 14-17 (15 min.)Allocating costs to...

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