Bradbo owned two adjoining restaurants, the Pork Palace and…

Bradbo owned two adjoining restaurants, the Pork Palace and the Chicken Hut. Each restaurant was treated as a profit center for performance evaluation purposes. Although the restaurants had separate kitchens, they shared a central baking facility. The principal costs of the baking area included materials, supplies, labor, and depreciation and maintenance on the equipment.Bradbo allocated the monthly costs of the baking facility to the two restaurants based on the number of tables served in each restaurant during the month using dual allocation and equal sharing of fixed costs. In April, the costs were $30,000, of which $16,000 were fixed. The Pork Palace served 4,400 tables, while the Chicken Hut served 3,600 tables.The amount of the joint cost that should have been allocated to the Chicken Hut in April is calculated to be:

Quick Technology Company is a supplier of high-end research…

Quick Technology Company is a supplier of high-end research equipment for the pharmaceutical industry. Quick currently has a variety of different firms producing computer chips for increased memory and improved processing speeds which are installed in Quick’s equipment. In this case, having another firm provide supplies for Quick’s equipment is an example of:

Household Brands Incorporated (HBI) manufactures household g…

Household Brands Incorporated (HBI) manufactures household goods in the United States. The company made two acquisitions in previous years to diversify their product lines. In 2011, HBI acquired cosmetics and consumer electronics companies. HBI is now, in 2022, comprised of three divisions: cosmetics, household, and consumer electronics. The following information (in thousands of dollars) presents operating revenues, operating income, and invested assets of the company over the last three years:   Revenue Operating Income Assets Cosmetics       2020 $ 26,800 $ 2,800 $ 9,600 2021 19,600 1,900 9,300 2022 20,000 1,800 9,250 Household       2020 16,000 1,600 7,560 2021 15,300 1,100 8,140 2022 10,400 870 6,500 Electronics       2020 14,000 1,400 4,350 2021 9,540 1,600 4,640 2022 8,960 1,040 4,320 Household Brands Total       2020 56,800 5,800 21,510 2021 44,440 4,600 22,080 2022 39,360 3,710 20,070 The current compensation package is an annual bonus award. The senior executives share in the bonus pool. The pool is calculated as 20% of the annual residual income of the company. The residual income is defined as operating income minus a cost of capital charge of 15% of invested assets.The total amount of the bonus pool for 2021 is: