Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit to...
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Accounting
Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data:
Center
Budgeted Revenue
Actual Revenue
Budgeted Direct Costs
Actual Direct Costs
Downtown
$
265,500
$
375,900
$
322,000
$
360,800
Irvine
531,000
608,600
579,600
492,000
H. Beach
973,500
805,500
708,400
787,200
Totals
$
1,770,000
$
1,790,000
$
1,610,000
$
1,640,000
WO's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $80,000. If advertising expense were allocated to centers based on actual center profitability, the amount of advertising expense allocated to the Irvine center would be closest to:
Multiple Choice
$26,727.
$27,952.
$40,000.
$62,187.
None of the answers is correct.
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