Question: Roberto s Markets Inc has three grocery stores in the metropolitan

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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