Question

Roberto’s Markets, Inc., has three grocery stores in the metropolitan Atlanta area. The company allocates central costs using sales as the cost-allocation base. The following are budgeted and actual sales during November:


Central costs of $360,000 are to be allocated in November.
1. Compute the central costs allocated to each store with budgeted sales as the cost-allocation base.
2. Compute the central costs allocated to each store with actual sales as the cost-allocation base.
3. What advantages are there to using budgeted rather than actual sales for allocating the centralcosts?


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  • CreatedNovember 19, 2014
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