Owen Audio shows the following information for its two divisions for year 1. Commercial Division Sales revenue Cost of sales Consumer Division $ 1,840,800 1,104,480 $ 5,829,200 3,781,100 Selling, General and Administrative Allocated corporate overhead 277,400 350,840 128,760 407,740 Required: a. Compute divisional operating income for the two divisions. Ignore taxes. b-1. What are the gross margin and operating margin percentages for both divisions? b-2. How well have these divisions performed?
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- Service department charges In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of 64,560, and the Purchasing Department had expenses of 40,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: A. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. B. Using the cost driver information in (A), determine the annual amount of payroll and purchasing costs allocated to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. C. Why does the Residential Division have a larger support department allocation than the other two divisions, even though its sales are lower?Profit center responsibility reporting On-Demand Sports Co. operates two divisions—the Action Sports Division and the Team Sports Division. The following income and expense accounts were provided as of November 30. 20Y1, the end of the current fiscal year, after all adjustments, including those for inventories, were recorded The bases to be used in allocating expenses, together with other essential information, are as follows a.Advertising expense—incurred al headquarters, charged back to divisions on the basis of usage: Action Sports Division. $1,200,000; Team Sports Division, $1,800,000. b. Transportation expense—charged hack lo divisions at a charge rale of $18.50 per bill of lading: Action Sports Division, 14.000 bills of lading; Team Sports Division. 21.400 bills of lading. C. Accounts receivable collection expense—incurred al headquarters, charged back to divisions at a charge rate of $9-00 per invoice: Action Sports Division. 32.000 sales invoices; Team Sports Division, 12.500 sales invoices. d. Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Action Sports Division. 120.000 square feet; Team Sports Division. 80.000 square feet. Prepare divisional income statements with two column headings: Action Sports Division and Team Sports Division. Provide supporting schedules for determining service department charges.Owen Audio shows the following information for its two divisions for year 1. Commercial Division. Consumer Division $ 1,879,2001 1,127,520 293,400 $ 5,950,800 3,797,100 366,840 130,680 413,820 Sales revenue Cost of sales Selling, General and Administrative Allocated corporate overhead Required: a. Compute divisional operating income for the two divisions. Ignore taxes. b-1. What are the gross margin and operating margin percentages for both divisions? b-2. How well have these divisions performed? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Compute divisional operating income for the two divisions. Ignore taxes. Consumer Division Commercial Division Operating income
- Arlington Clothing, Inc., shows the following information for its two divisions for year 1. Sales revenue Cost of sales Allocated corporate overhead Other general and administration Required: a. Compute divisional operating income for the two divisions. Ignore taxes. b-1. What are the gross margin and operating margin percentages for both divisions? b-2. How well have these divisions performed? Req A Complete this question by entering your answers in the tabs below. Operating income Lake Region $4,040,000 2,631,300 242,400 541,900 Req B1 stion 10- Hom... Req B2 Compute divisional operating income for the two divisions. Ignore taxes. (Enter your answers in thousa to 1 decimal place.) Coastal Region $12,950,000 6,475,000 777,000 3,743,000 Lake Region Coastal Region Reg A Req B1 > < PrevArlington Clothing, Inc., shows the following information for its two divisions for year 1. Lake Region Coastal Region Sales revenue $ 4,160,000 $ 13,070,000 Cost of sales 2,691,300 6,535,000 Allocated corporate overhead 249,600 784,200 Other general and administration 553,900 3,755,000 Required: a. Compute divisional operating income for the two divisions. Ignore taxes. b-1. What are the gross margin and operating margin percentages for both divisions? b-2. How well have these divisions performed?The following data is for a company that produces a single product. selling price 24 193 Units in beginning inventory Units produced Units sold 3,090 2,910 variable costs per unit: Direct materials 53 Direct labor $ 24 59 Variable manufacturing overhead variable selling and administrative expense Fixed costs: 15 13 Fixed manufacturing overhead Fixed selling and administrative $ 89,610 $ $,730 Requlred: a. What Is the unit product cost for the month under varlable costing? b. What is the unit product cost for the month under absorption costing? c. Prepare a contribution format income statement for the month using varlable costing. d. Prepare an Income statement for the month using absorption costing. e. Reconcile the varlable costing and absorption costing net operating incomes for the month. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Reconcile the variable costing and absorption costing net operating incomes…
- Zachary Company operates three segments Income statements for the segments imply that profitability could be improved if Segment A were eliminated. ZACHARY COMPANY Income Statements for Year 2 Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) Required a. Prepare a schedule of relevant sales and costs for Segment A A $ 168,000 (126,000) (20,000) 22,000 (34,000) (6,000) B $ 235,000 (79,000) (32,000) 124,000 (51,000) (19,000) $ (18,000) $ 54,000 $ 253,000 (82,000) (28,000) 143,000 (34,000) $ 109,000 b. Prepare comparative income statements for the company as a whole under two alternatives (1) the retention of Segment A and (2) the elimination of Segment A Complete this question by entering your answers in the tabs below.. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Revenue and Cost…U company is having 2 divisions the Adif division and Wolf division. The total income of the company is $17,500. The segment margin for Adif division and Wolf division is $75,800 and $52,600 respectively. Determine the amount of common fixed expense not traceable to the www individual divisions a. $110,900 b. $128,400 c. $23,200 d. $15,450Exercise 14-27 (Algo) Computing Divisional Income: Incomplete Information and Financial Ratios (LO 14- 1) The following partial financial information (in thousands of dollars) is available for Thole, Incorporated: Corporate overhead costs at Thole are allocated to divisions based on relative sales. Required: a. Complete the income statements for both divisions and the corporation as a whole. Note: Enter your answers in thousands. Enter all values as positive value. Round your answers to 1 decimal place. Sales Cost of sales Gross margin Selling, General and Administrative Allocated corporate costs Operating income Tax expense (@20%) After-tax income Gross margin percentage Operating margin Profit margin Pacific 20.0 (Thousands of Dollars) Southern 40.00% 20.00 % 16.00 % 50.00 % 36.00 % 28.80 % Total 100.0 $1,016.8 48.00 % 32.80 % 26.24 %
- GREEN COMPANY has two divisions: Del Sur Division and Del Norte Division. The following data are for the most recent operating period: Total Company Del Sur Division Del Norte DivisionSales P 418,000 P 193,000 P 225,000 Variable expenses P 130,880 P 79,130 P 51,750 Traceable fixed expenses P 186,000 P 77,000 P 109,000 Common fixed expense P 79,420 P 36,670 P 42,750 The bookkeeper allocated common fixed expenses to the divisions on the basis of sales. Required: a. What is the company's overall break-even sales? b. Determine the break-even point for Del Sur Division c. Determine the break-even point for Del Norte Division.Fanning Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) FANNING COMPANY Income Statements for Year 2 Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Revenue and Cost Items for Segment A Effect on income $ Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. A $ 169,000 (123,000) (20,000) 26,000 (37,000) (5,000) $ (16,000) 0 B $242,000 (92,000) (32,000) 118,000 (35,000) (19,000) $ 64,000 с $ 262,000…1 ) Retail Division = ( 1125 / 2500 ) x 264000 = 118800 commercial division = ( 1375 / 2500 ) x 264000 = $ 145200 Using the data for Lee Company above along with the following data, determine the divisional income from operations for the Division and the Commercial Division:
