The nontraceable expenses of Wick Company's corporate (home) office for 2006 amounted to $360,000. The net sales, payroll, and average plant assets and inventories for the two operating segments of Wick were as follows:
Prepare a working paper to compute the amount of corporate (home) office nontraceable expenses to be allocated to Alpha Segment, assuming that such expenses are allocated to the segments on the basis of the arithmetic average of the percentage of net sales, payroll, and average plant assets and inventories applicable to each segment.

Question

The nontraceable expenses of Wick Company's corporate (home) office for 2006 amounted to $360,000. The net sales, payroll, and average plant assets and inventories for the two operating segments of Wick were as follows:
  Prepare a working paper to compute the amount of corporate (home) office nontraceable expenses to be allocated to Alpha Segment, assuming that such expenses are allocated to the segments on the basis of the arithmetic average of the percentage of net sales, payroll, and average plant assets and inventories applicable to each segment.

Quizplus · Accepted Answer

The Answer of The nontraceable expenses of Wick Company's corporate (home) office for 2006 amounted to $360,000. The net sales, payroll, and average plant assets and inventories for the two operating segments of Wick were as follows:
  Prepare a working paper to compute the amount of corporate (home) office nontraceable expenses to be allocated to Alpha Segment, assuming that such expenses are allocated to the segments on the basis of the arithmetic average of the percentage of net sales, payroll, and average plant assets and inventories applicable to each segment.

The Nontraceable Expenses of Wick Company's Corporate (Home) Office for 2006