Question: please answer within the format by providing formula the detailed working Please provide answer in text (Without image) Please provide answer in text (Without image)
please answer within the format by providing formula the detailed working Please provide answer in text (Without image) Please provide answer in text (Without image) Please provide answer in text (Without image)
Giardin Outdoors is a recreational goods retailer with two divisions: Online and Stores. The two divisions both use the services of the corporate Finance and Accounting (F and A) Department. Annual costs of the F and A Department total $5.230 million a year. Managers in the two operating divisions are measured based on division operating profits.
The following selected data are available for the two operating divisions:
| Revenues ($000) | Transactions (000) | |
|---|---|---|
| Online | $ 75,300 | 1,366.5 |
| Stores | 41,100 | 433.5 |
Required:
Determine the cost allocation if $3.830 million of the F and A costs are fixed and allocated on the basis of revenues, and the remaining costs, which are variable, are allocated on the basis of transactions.
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar.
| online | stores | |
| fixed | ||
| variable | ||
| total | $ | $ |
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