Question: Coastal Computer operates two retail outlets in Oakview, one on Main Street and the other in Lakeland Mall. The stores share the use of a

Coastal Computer operates two retail outlets in Oakview, one on Main Street and the other in Lakeland Mall. The stores share the use of a central accounting department. The cost of the accounting department for last year was $244,000. Following are the operating results for the two stores for the year.

Main Street Lakeland Mall
Sales revenue $ 1,979,280 $ 3,518,720
Number of computers sold 1,820 1,680

Required:

a. Allocate the cost of the central accounting department to the two stores based on:

1. Number of computers sold.

2. Store revenue.

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