The senior management of Teens Love Chocolate (TLC), an operator of day-care facilities, wants the company's profit to be subdivided by centre. The firm's management accountant has provided the following data for the period ended December 31, 2012: $\begin{array} { | l | r | r | r | r | }
\hline { \text { Centre } } & \text { Actual Revenue } & \text { Budgeted Revenue } & \text { Actual Direct Costs } & \begin{array} { c }
\text { Budgeted Direct } \
\text { Costs }
\end{array} \
\hline \text { Brooklyn } & \$ 440,000 & \$ 420,000 & \$ 400,000 & 400,000 \
\hline \text { Manhattan } & 634,200 & 660,000 & \$ 440,000 & 610,000 \
\hline \text { Queens } & \underline { 845,300 } & \underline { 820,000 } & \underline { 840,000 } & \underline { 790,000 } \
\hline \text { Totals } & \underline { \$ 1.919,700 } & \underline { \$ 1,900,000 } & \$ \underline { \$ 180,000 } & \$ 1.800,000 \
\hline
\end{array}$ TLC's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $80,000. Assume that management used the allocation base that is most influenced by advertising effort and consistent with sound managerial accounting practices. How much advertising would be allocated to Manhattan?

Question

The senior management of Teens Love Chocolate (TLC), an operator of day-care facilities, wants the company's profit to be subdivided by centre. The firm's management accountant has provided the following data for the period ended December 31, 2012: $\begin{array} { | l | r | r | r | r | } 
\hline { \text { Centre } } & \text { Actual Revenue } & \text { Budgeted Revenue } & \text { Actual Direct Costs } & \begin{array} { c } 
\text { Budgeted Direct } \
\text { Costs }
\end{array} \
\hline \text { Brooklyn } & \$ 440,000 & \$ 420,000 & \$ 400,000 & 400,000 \
\hline \text { Manhattan } & 634,200 & 660,000 & \$ 440,000 & 610,000 \
\hline \text { Queens } & \underline { 845,300 } & \underline { 820,000 } & \underline { 840,000 } & \underline { 790,000 } \
\hline \text { Totals } & \underline { \$ 1.919,700 } & \underline { \$ 1,900,000 } & \$ \underline { \$ 180,000 } & \$ 1.800,000 \
\hline
\end{array}$ TLC's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $80,000. Assume that management used the allocation base that is most influenced by advertising effort and consistent with sound managerial accounting practices. How much advertising would be allocated to Manhattan?

Quizplus · Accepted Answer

The Answer of The senior management of Teens Love Chocolate (TLC), an operator of day-care facilities, wants the company's profit to be subdivided by centre. The firm's management accountant has provided the following data for the period ended December 31, 2012: $\begin{array} { | l | r | r | r | r | } 
\hline { \text { Centre } } & \text { Actual Revenue } & \text { Budgeted Revenue } & \text { Actual Direct Costs } & \begin{array} { c } 
\text { Budgeted Direct } \
\text { Costs }
\end{array} \
\hline \text { Brooklyn } & \$ 440,000 & \$ 420,000 & \$ 400,000 & 400,000 \
\hline \text { Manhattan } & 634,200 & 660,000 & \$ 440,000 & 610,000 \
\hline \text { Queens } & \underline { 845,300 } & \underline { 820,000 } & \underline { 840,000 } & \underline { 790,000 } \
\hline \text { Totals } & \underline { \$ 1.919,700 } & \underline { \$ 1,900,000 } & \$ \underline { \$ 180,000 } & \$ 1.800,000 \
\hline
\end{array}$ TLC's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $80,000. Assume that management used the allocation base that is most influenced by advertising effort and consistent with sound managerial accounting practices. How much advertising would be allocated to Manhattan?

The Senior Management of Teens Love Chocolate (TLC), an Operator