Reference no: EM132506954
Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data:
Center Budgeted Revenue Actual Revenue Budgeted Direct Costs Actual Direct Costs
Downtown $510,000 $378,400 $323,400 $329,700
Irvine 765,000 602,000 554,400 502,400
H.Beach 425,000 739,600 662,200 737,900
Totals $1,700,000 $1,720,000 $1,540,000 $1,570,000
- WO's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $73,000.
Question 1: Assume that management used the allocation base that is most influenced by advertising effort and consistent with sound managerial accounting practices. How much advertising would be allocated to the Irvine center?
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: How much advertising would be allocated to the Irvine center? Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit
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