Doug Dandy Auto Sales uses all types of media to advertise its products (television, radio, newspaper,...
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Doug Dandy Auto Sales uses all types of media to advertise its products (television, radio, newspaper, Internet and so on). At the end of 2016, the company president, Doug Douglas, decided that all advertising costs would be incurred by corporate headquarters and allocated to each of the company's four sales locations based on number of vehicles sold. If the managers had done this same advertising on their own their advertising costs would be as follows: E (Click the icon to view the data.) i (Click the icon to view the advertising information.) i (Click the icon to view information about the east sales location.) Read the requirements. Requirement 1. Show the amount of the 2017 advertising cost ($1,400,000) that would be allocated to each of the divisions under the following criteria: (a) Douglas' allocation method based on number of cars sold, (b) the stand-alone method if divisions had done their own advertising, (c) the incremental-allocation method, with divisions ranked on the basis of dollars they would have spent on advertising in 2017. (Do not round intermediary calculations. Round the final answer to the nearest whole dollar. Enter a "0" for amount with a zero values.) (a.) (b.) (c.) Data Table Sales Location Cost Allocated Cost Allocated Cost Allocated East $ 476,000 $ 196,000 West 182,000 364,000 Actual Number of Advertising Costs in 2017 if Divisions Had Bought the Advertising North 336,000 406,000 Sales Location Cars Sold in 2017 South 406,000 434,000 East 2,720 $ 306,600 $ 1,400,000 $ 1,400,000 West 1,040 569,400 North 1,920 635,100 2,320 678,900 South 8,000 $ 2,190,000 Total Print Done Enter any number in the edit fields and then click Check Answer. Doug Dandy Auto Sales uses all types of media to advertise its products (television, radio, newspaper, Internet and so on). At the end of 2016, the company president, Doug Douglas, decided that all advertising costs would be incurred by corporate headquarters and allocated to each of the company's four sales locations based on number of vehicles sold. If the managers had done this same advertising on their own their advertising costs would be as follows: E (Click the icon to view the data.) i (Click the icon to view the advertising information.) i (Click the icon to view information about the east sales location.) Read the requirements. Requirement 1. Show the amount of the 2017 advertising cost ($1,400,000) that would be allocated to each of the divisions under the following criteria: (a) Douglas' allocation method based on number of cars sold, (b) the stand-alone method if divisions had done their own advertising, (c) the incremental-allocation method, with divisions ranked on the basis of dollars they would have spent on advertising in 2017. (Do not round intermediary calculations. Round the final answer to the nearest whole dollar. Enter a "0" for amount with a zero values.) (a.) (b.) (c.) Data Table Sales Location Cost Allocated Cost Allocated Cost Allocated East $ 476,000 $ 196,000 West 182,000 364,000 Actual Number of Advertising Costs in 2017 if Divisions Had Bought the Advertising North 336,000 406,000 Sales Location Cars Sold in 2017 South 406,000 434,000 East 2,720 $ 306,600 $ 1,400,000 $ 1,400,000 West 1,040 569,400 North 1,920 635,100 2,320 678,900 South 8,000 $ 2,190,000 Total Print Done Enter any number in the edit fields and then click Check Answer.
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For Incremental Allocation method we will allocate 140... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133428704
15th edition
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Posted Date:
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