Assume that a food division reported sales revenue of


Question: Assume that a food division reported sales revenue of $337,218 and the bar-lounge reported sales revenue of $206,682. Indirect costs of $52,400 are to be allocated to each division on the basis of sales revenue.

a. What is the allocated amount of indirect costs to the food division?

b. What is the allocated amount of indirect costs to the beverage division?

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Accounting Basics: Assume that a food division reported sales revenue of
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