Three not-for-profit organizations operate separately in Whispering City. The most established entity, Whispering Support, has been around for over 100 years and generates by far the largest amount of donations. Whispering Kidz Zone was founded 30 years ago and generates less than half of what Whispering Support brings in. Whispering Emergency Aid was founded just 20 years ago and provides relief to those in the most urgent of circumstances. Whispering Emergency Aid is building its donation network and is already close to the level of Whispering Kidz Zone in terms of fundraising dollars. Until last year, all three entities operated separately-separate staff, separate spaces, and separate work plans. Then last year, discussions began to coordinate some of their administrative efforts for efficiency purposes, recognizing that each could benefit if they were willing to give up a bit of comfort. Each entity is paying the following amount annually to rent administrative space and cover the cost of staff. Whispering Support Whispering Kidz Zone Whispering Emergency Aid $138,720 73,440 59,840 After some searching, they found a space that would accommodate everyone's needs, while making it possible to reduce administrative hours by 30%. The new, larger space plus administrative labor cost for all would be $184,500. (a) Your answer is correct. Using the stand-alone method, determine how much of the total cost for shared space and administrative labor would be allocated to each entity. (Round percentage of total to 2 decimal places, e.g. 15.25% and final answers to O decimal places, e.g. 125.) Whispering Support Whispering Kidz Zone Whispering Emergency Aid Total costs New cost paid by each 94095 49815 40590 184500 (b) SUPPOR Your answer is partially correct. Use the incremental method to allocate the new shared cost to each entity, ranking the entities by last year's fundraising results (the entity with the largest fundraising amount will be ranked first). New cost paid by each $ Whispering Support Whispering Kidz Zone Whispering Emergency Aid 138720 $ $ $ Total costs 184500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Three not-for-profit organizations operate separately in Whispering City. The most established entity, Whispering Support, has been around for over 100 years and generates by far the largest amount of
donations. Whispering Kidz Zone was founded 30 years ago and generates less than half of what Whispering Support brings in. Whispering Emergency Aid was founded just 20 years ago and provides
relief to those in the most urgent of circumstances. Whispering Emergency Aid is building its donation network and is already close to the level of Whispering Kidz Zone in terms of fundraising dollars.
Until last year, all three entities operated separately-separate staff, separate spaces, and separate work plans. Then last year, discussions began to coordinate some of their administrative efforts for
efficiency purposes, recognizing that each could benefit if they were willing to give up a bit of comfort.
Each entity is paying the following amount annually to rent administrative space and cover the cost of staff.
Whispering Support
Whispering Kidz Zone
Whispering Emergency Aid
$138,720
73,440
59,840
After some searching, they found a space that would accommodate everyone's needs, while making it possible to reduce administrative hours by 30%. The new, larger space plus administrative labor cost
for all would be $184,500.
(a)
Your answer is correct.
Using the stand-alone method, determine how much of the total cost for shared space and administrative labor would be allocated to each entity. (Round percentage of total to 2 decimal places, e.g.
15.25% and final answers to O decimal places, e.g. 125.)
Whispering Kidz Zone
Whispering Emergency Aid
Total costs
94095
$
49815
$
40590
Whispering Support
New cost paid by each
$
(b)
184500
SUPPORT
Your answer is partially correct.
Use the incremental method to allocate the new shared cost to each entity, ranking the entities by last year's fundraising results (the entity with the largest fundraising amount will be ranked first).
New cost paid by each
Whispering Support
138720
Whispering Kidz Zone
Whispering Emergency Aid
$
Total costs
184500
Transcribed Image Text:Three not-for-profit organizations operate separately in Whispering City. The most established entity, Whispering Support, has been around for over 100 years and generates by far the largest amount of donations. Whispering Kidz Zone was founded 30 years ago and generates less than half of what Whispering Support brings in. Whispering Emergency Aid was founded just 20 years ago and provides relief to those in the most urgent of circumstances. Whispering Emergency Aid is building its donation network and is already close to the level of Whispering Kidz Zone in terms of fundraising dollars. Until last year, all three entities operated separately-separate staff, separate spaces, and separate work plans. Then last year, discussions began to coordinate some of their administrative efforts for efficiency purposes, recognizing that each could benefit if they were willing to give up a bit of comfort. Each entity is paying the following amount annually to rent administrative space and cover the cost of staff. Whispering Support Whispering Kidz Zone Whispering Emergency Aid $138,720 73,440 59,840 After some searching, they found a space that would accommodate everyone's needs, while making it possible to reduce administrative hours by 30%. The new, larger space plus administrative labor cost for all would be $184,500. (a) Your answer is correct. Using the stand-alone method, determine how much of the total cost for shared space and administrative labor would be allocated to each entity. (Round percentage of total to 2 decimal places, e.g. 15.25% and final answers to O decimal places, e.g. 125.) Whispering Kidz Zone Whispering Emergency Aid Total costs 94095 $ 49815 $ 40590 Whispering Support New cost paid by each $ (b) 184500 SUPPORT Your answer is partially correct. Use the incremental method to allocate the new shared cost to each entity, ranking the entities by last year's fundraising results (the entity with the largest fundraising amount will be ranked first). New cost paid by each Whispering Support 138720 Whispering Kidz Zone Whispering Emergency Aid $ Total costs 184500
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