Pecos Flats, an ecotourism business, has two service centers, Human Resources and Financial Resources. They provide services
Question:
Pecos Flats, an ecotourism business, has two service centers, Human Resources and Financial Resources. They provide services to each other as well as to two revenue centers, Desert Adventures and Sea Adventures. Data for the revenue centers’ summer season are as follows:
Human Resources had total costs of $250,000, and Financial Resources had total costs of $120,000. Human Resources’ costs are assigned based on the number of revenue centers, and Financial Resources’ costs are assigned based on center revenue. Overhead costs are applied on the basis of trips sold. Assign service center costs to the revenuecenters.
Desert Sea Adventures Adventures $200,000 $300,000 Center revenue Number of revenue centers Trips sold 2,000 6,000
Step by Step Answer:
MethodPhysical Measures and Ability to Pay Allocation Allocation Fraction Fraction Huma...View the full answer
Managerial Accounting
ISBN: 978-0618777181
8th Edition
Authors: Susan V. Crosson, Belverd E. Needles
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