Max's Cafes operates 3 locations. Overhead is split between the 3 three stores based on square footage: A has 12,000 sq ft, B has 8,000 sq ft, and C has 10,000 sq ft. Overhead is composed of rent and insurance: $330,000; advertising: $200,000; corporate accounting and services: $220,000. What would the using square footage? $ per square foot and A would be B would be charged $ charged $ charged $ and C would be for a total of $750,000. Analysis showed that the overhead costs had different drivers. The chart below shows this information: driver Bookstore C Bookstore A 12,000 $900,000 20 cost Bookstore B 12,000 $450,000 15 14,000 $650,000 15 rent & insurance square footage advertising corp accounting revenues # of employees Using this information, the rate to spread the rent and insurance cost is $ per sq foot; for advertising it is $ per dollar of revenue and $ per employee for corp accounting.
Max's Cafes operates 3 locations. Overhead is split between the 3 three stores based on square footage: A has 12,000 sq ft, B has 8,000 sq ft, and C has 10,000 sq ft. Overhead is composed of rent and insurance: $330,000; advertising: $200,000; corporate accounting and services: $220,000. What would the using square footage? $ per square foot and A would be B would be charged $ charged $ charged $ and C would be for a total of $750,000. Analysis showed that the overhead costs had different drivers. The chart below shows this information: driver Bookstore C Bookstore A 12,000 $900,000 20 cost Bookstore B 12,000 $450,000 15 14,000 $650,000 15 rent & insurance square footage advertising corp accounting revenues # of employees Using this information, the rate to spread the rent and insurance cost is $ per sq foot; for advertising it is $ per dollar of revenue and $ per employee for corp accounting.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
Section: Chapter Questions
Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...
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