'Finnegan’s Garden Essay\r'

'The overlap be of each(prenominal) return overseas telegram can be allocated in several(prenominal) different ways. You can allocate based on FTE’s, pass-labor cost, direct labor plus direct materials or by public square footage usage. If you were to allocate the shared costs for Finnegan’s Gardens by FTE you would allocate $24,778 to design, $89,203 to installation, $56,991 to precaution and $24,778 to administration. To inscribe the allocation based on FTE’s, I divided the FTE number given for each returns define and divided it by the thorough number of FTE’s.\r\nI then multiplied the pass by the total shared costs of $195,750. If you chose to allocate based on direct labor, you would allocate $43,843 to design, $119,360 to installation and $76,390 to attention. To allocate the costs based on direct labor, I metric the direct labor rate per hour for each service line. I divided this number by the total direct labor hours and multiplied t hat result by the total of the shared costs. If you add in the direct materials to the direct labor, you would allocate $42,231 to design, $94,736 to installation and $58,782 to fear.\r\nI employ the same method to allocate the direct labor plus direct materials as I used to allocate the costs based on direct labor. The last method I used for allocating the shared costs was based on the square footage. To allocate the shared costs based on square footage, you would allocate $$113,661 to design, $20,522 to installation, $20,522 to aliment and $41,044 to administration. When you look at the Earnings Statement by Service Line, it appears that maintenance has the largest profit margin. This can be attributed to the fact that Finnegan’s design and installation customers often use them for their maintenance services too.\r\nI would have to agree with the pelf statement. The maintenance service line produces decent revenue enhancement that more than covers their expenses. Even if you add in the shared costs, it will still have the largest profit margin. I think Finnegan’s should expand the maintenance service line. I believe that expanding this service line by 10% would be in the best vex of the company.\r\nEven though this expansion would require Finnegan to leveraging an additional vehicle and rent additional glasshouse space, the expense of these wo items is not more than 10% add in the revenue. I believe that in set up for the company to make more money, it would need to shake off a little more money to do so. I believe that expanding the maintenance service line would also be easier to achieve than expanding the other deuce service lines. Even though the majority of the maintenance business comes from the design and installation service lines, I believe finding customers to sign up for maintenance of their lawns would be easier than trying to find customers who want to restore their landscape.\r\n'