Asia Europe Total
28,600$ 36,400$ 65,000$
14,300 21,840 36,140
14,300$ 14,560$ 28,860$
6,600 8,400 15,000
7,700$ 6,160$ 13,860$
Correct! Correct! Correct!
Asia Europe Total
28,600$ 36,400$ 65,000$
14,300 21,840 36,140
14,300$ 14,560$ 28,860$
6,160 7,840 14,000
8,140$ 6,720$ 14,860$
Correct! Correct! Correct!
Asia Europe Total
7,700$ 6,160$ 14,860$
Corporate costs
Operating profit
Unallocated costs
Fixed costs
Variable costs
Operating profit before allocations
Revenues
Direct costs
Operating profit
Corporate costs
Operating profit before allocations
Direct costs
Part b. – Operating Profits after allocation of corporate costs
Revenues
Direct costs
Operating profit before allocations
Corporate costs
Operating profit
Part d. – Corporate cost allocation system
Revenues
Part a. – Budgeted Operating Profits
Problem 12-49
STABLE ENTERPRISES
Asia Europe
28,600$ 36,400$
14,300 21,840
14,300$ 14,560$
15,000$
8,500$
6,500$
Asia Europe
28,600$ 36,400$
14,300$ 14,560$
Direct Division Costs
Operating profit before allocation
Year 8 Actual
Actual Year 8 Corporate overhead costs
Fixed
Variable
Revenues
Year 8 Budgeted
Revenues
Variable
Fixed
Expected Year 8 Corporate overhead costs
Additional Information:
Operating profit before allocation
Direct Division Costs
Time Usage Number of
(thousands Reservations
Division of minutes) (thousands)
Luxury 400 120
Resort 200 150
Standard 800 360
Budget 600 870
Total 2,000 1,500
840,000$
650,000
1,490,000$
Correct!
Proportion of Allocated
Department Total Time Cost
1,490,000$
Proportion of Allocated Proportion of Allocated Total
Department Time Usage Time Cost Reservations Equipment Cost Allocated
Part a(2). Dual allocations
PACIFIC HOTELS
Part a(1). Allocations based on time usage:
Total costs
Equipment and other costs
Personnel costs
Problem 12-50
Time Usage Number of
(thousands of Reservations
Division minutes) (thousands)
Luxury 400 120
Resort 200 150
Standard 800 360
Budget 600 870
PACIFIC HOTELS
Given Data P12-50: