FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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MC Qu. 12-42 Management of Wee Ones (WO), an operator...
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:
Budgeted
Revenue
Actual
Revenue
$ 477,000 $ 338,100
Center
Budgeted
Direct Costs
$ 286,000
457,600
Actual
Direct Costs
$ 321, 200
Downtown
Irvine
715,500
499, 100
394, 200
744,600
397,500
772,800
686,400
H. Beach
Totals
$1,590,000 $1,610,000
$1,430,000
$1,460,000
WO's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $62,000.
If advertising expense were allocated to centers based on actual center profitability, the amount of advertising expense allocated to the Irvine center would be closest to:
Multiple Choice
O
O
$20,486.
$21,696.
$31,000.
$43,359.
None of the answers is correct.
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Transcribed Image Text:MC Qu. 12-42 Management of Wee Ones (WO), an operator... 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: Budgeted Revenue Actual Revenue $ 477,000 $ 338,100 Center Budgeted Direct Costs $ 286,000 457,600 Actual Direct Costs $ 321, 200 Downtown Irvine 715,500 499, 100 394, 200 744,600 397,500 772,800 686,400 H. Beach Totals $1,590,000 $1,610,000 $1,430,000 $1,460,000 WO's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $62,000. If advertising expense were allocated to centers based on actual center profitability, the amount of advertising expense allocated to the Irvine center would be closest to: Multiple Choice O O $20,486. $21,696. $31,000. $43,359. None of the answers is correct.
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