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Allocate service department expenses proportional to sales

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Using the data from the Koko Company, determine the divisional income from operations for the A and B regions.

 

A Region

B Region

 

Sales

$600,000

$900,000

 

Cost of goods sold

  200,000

  350,000

 

Selling expenses

  150,000

  275,000

 

 

 

 

 

Service department expenses

 

 

 

        Purchasing

 

 

$80,000

        Payroll accounting

 

 

  40,000




Allocate service department expenses proportional to the sales of each region.

 

Reference no: EM13492099

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