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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