On what basis have the common fixed costs been allocated


Rally Shoe Company is trying to decide whether or not to continue making bowling shoes. The following information is available for the segments.

Bowling Shoes Athletic Shoes Boots
Sales $120,000 $420,000 $360,000
Variable Costs 64,000 220,000 140,000
Contribution Margin 56,000 200,000 220,000
Direct Fixed Costs 45,000 70,000 90,000
Allocated Common Fixed costs 20,000 70,000 60,000
Net Income ($9,000) $60,000 $70,000

On what basis have the common fixed costs been allocated to the segments?

 

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: On what basis have the common fixed costs been allocated
Reference No:- TGS069053

Expected delivery within 24 Hours