Question content area top Part 1 Fortune Bakery makes baked goods for...
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Question content area top Part Fortune Bakery makes baked goods for grocery stores, and has three divisions: Bread, Cake, and Doughnuts. Each division is run and evaluated separately, but the main headquarters incurs costs that are indirect costs for the divisions. LOADING... Click to view information for each division and the main headquarters. Requirements Allocate the indirect costs of Fortune to each division equally. Calculate division operating income after allocation of headquarters costs. Allocate headquarters costs to the individual divisions using the proposed allocation bases. Calculate the division operating income after allocation. Comment on the allocation bases used to allocate headquarters costs. Which division manager do you think suggested this new allocation? Explain briefly. Which allocation do you think is "better" 
Question content area top
Part
Fortune Bakery makes baked goods for grocery stores, and has three divisions: Bread, Cake, and Doughnuts. Each division is run and evaluated separately, but the main headquarters incurs costs that are indirect costs for the divisions.
LOADING... Click to view information for each division and the main headquarters.
Requirements
Allocate the indirect costs of Fortune to each division equally. Calculate division operating income after allocation of headquarters costs.
Allocate headquarters costs to the individual divisions using the proposed allocation bases. Calculate the division operating income after allocation. Comment on the allocation bases used to allocate headquarters costs.
Which division manager do you think suggested this new allocation? Explain briefly. Which allocation do you think is "better"
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