a. What are the budgeted operating profits in each division for year 1 after the corporate costs are allocated? b. At the end of year 1, actual corporate costs incurred were $3.7 million. Of the $3.7 million, $1.44 million was fixed, $1.3 million was variable with respect to revenues, and $0.96 million was variable with respect to FTEs. Actual division results in year 1, prior to any allocation, are as follows: Employees (FTE) Revenues ($000) Direct costs ($000) Agriculture Mining 25 55 $ 10,400 7,400 $ 3,000 $ 15,600 13,600 $ 2,000 Operating profit before allocation ($000) What are the actual (reported) operating profits in each division for year 1 after the corporate costs are allocated? Complete this question by entering your answers in the tabs below. Required A Required B What are the budgeted operating profits in each division for year 1 after the corporate costs are allocated? Note: Do not round intermediate calculations. Enter your answers in thousands of dollars. Revenues Direct costs Operating profit before allocations SA $ Corporate costs Operating profit Agriculture Mining SA 0 $ 0 $ SA Total 0 0 0 0 $ 0 $ 0 $ 0
a. What are the budgeted operating profits in each division for year 1 after the corporate costs are allocated? b. At the end of year 1, actual corporate costs incurred were $3.7 million. Of the $3.7 million, $1.44 million was fixed, $1.3 million was variable with respect to revenues, and $0.96 million was variable with respect to FTEs. Actual division results in year 1, prior to any allocation, are as follows: Employees (FTE) Revenues ($000) Direct costs ($000) Agriculture Mining 25 55 $ 10,400 7,400 $ 3,000 $ 15,600 13,600 $ 2,000 Operating profit before allocation ($000) What are the actual (reported) operating profits in each division for year 1 after the corporate costs are allocated? Complete this question by entering your answers in the tabs below. Required A Required B What are the budgeted operating profits in each division for year 1 after the corporate costs are allocated? Note: Do not round intermediate calculations. Enter your answers in thousands of dollars. Revenues Direct costs Operating profit before allocations SA $ Corporate costs Operating profit Agriculture Mining SA 0 $ 0 $ SA Total 0 0 0 0 $ 0 $ 0 $ 0
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 5E: Service department charges In divisional income statements prepared for Demopolis Company, the...
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![a. What are the budgeted operating profits in each division for year 1 after the corporate costs are allocated?
b. At the end of year 1, actual corporate costs incurred were $3.7 million. Of the $3.7 million, $1.44 million was fixed, $1.3 million was
variable with respect to revenues, and $0.96 million was variable with respect to FTEs. Actual division results in year 1, prior to any
allocation, are as follows:
Employees (FTE)
Revenues ($000)
Direct costs ($000)
Agriculture
Mining
25
55
$ 10,400
7,400
$ 3,000
$ 15,600
13,600
$ 2,000
Operating profit before allocation ($000)
What are the actual (reported) operating profits in each division for year 1 after the corporate costs are allocated?
Complete this question by entering your answers in the tabs below.
Required A Required B
What are the budgeted operating profits in each division for year 1 after the corporate costs are allocated?
Note: Do not round intermediate calculations. Enter your answers in thousands of dollars.
Revenues
Direct costs
Operating profit before allocations
SA
$
Corporate costs
Operating profit
Agriculture
Mining
SA
0
$
0
$
SA
Total
0
0
0
0
$
0
$
0 $
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F69189e93-a4e8-4010-aa48-308d2724a919%2F14a422ed-ed62-434c-8dc6-cb1cf9f475f6%2F8dw9nc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:a. What are the budgeted operating profits in each division for year 1 after the corporate costs are allocated?
b. At the end of year 1, actual corporate costs incurred were $3.7 million. Of the $3.7 million, $1.44 million was fixed, $1.3 million was
variable with respect to revenues, and $0.96 million was variable with respect to FTEs. Actual division results in year 1, prior to any
allocation, are as follows:
Employees (FTE)
Revenues ($000)
Direct costs ($000)
Agriculture
Mining
25
55
$ 10,400
7,400
$ 3,000
$ 15,600
13,600
$ 2,000
Operating profit before allocation ($000)
What are the actual (reported) operating profits in each division for year 1 after the corporate costs are allocated?
Complete this question by entering your answers in the tabs below.
Required A Required B
What are the budgeted operating profits in each division for year 1 after the corporate costs are allocated?
Note: Do not round intermediate calculations. Enter your answers in thousands of dollars.
Revenues
Direct costs
Operating profit before allocations
SA
$
Corporate costs
Operating profit
Agriculture
Mining
SA
0
$
0
$
SA
Total
0
0
0
0
$
0
$
0 $
0
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