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Question - X Company, a merchandiser, buys and sells two different products, 1 and 2. The firm uses a single driver system to allocate its period expenses to these products Budgeted revenues and expenses for the coming year are as follows:
Product 1
Product 2
Total
Revenue
$1,135,000
$1,090,000
$2,225,000
Expenses
Cost of Good Sold
$681,000
$654,000
$1,335,000
Period expenses
$389,000
Using Revenue as the single driver, what was the allocation of period expenses to Product 1 [round the allocation rate to two decimal places]?
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