1-2 A and B are autonomous divisions of a corporation. They have no beginning or ending inventories,znd the mumber of units produced is equal to the number of wnits sold. Following is financial informationrelating to the two divisions.AP 150,000 P 400,00010,00030,00020,0005,00025,00015,00035,00012,000SalesOther revenue15,000Direct materialsDirect labor65.00040,000Variable factory overheadFixed factory overheadVariable S and A expenseFixed S and A expenseCentral corporate experses (allocated)15,00055,00030,00060,00020,0001. What is the total contribution to corporate profits generated by Division A before allocation ofcentral corporate expenses?2 P18,000b P 20,000C P 30,000d P 90,0002. What is the contribution margin of Division B?2. P150,000b. P 205,000c. P 235,000d. P 265,000

Answer 1) Calculation of total contribution to corporate profits generated by Division A…

1-2 A and B are zutonomous divisions of a corporation. They kave no beginning or ending invertories, and the mumber of units produced is equal to the number of units sold. Following is financial information relating to the tvo divisions. P150,000 P 400.000 10,000 30,000 20,000 5,000 25,000 15,000 35,000 12,000 Sales Other revenue 15,000 65,000 40,000 15,000 55,000 Direct materials Direct labor Variable factory overhead Fixed factory overhead Variable S and A expense 30,000 Fixed S and A expense 60,000 Central corporate expenses (allocated) 20,000 1. What is the total contribution to corporate profits generated by Division A before allocation of central corporate expenses? 2 P18,000 b P 20,000 C P 30,000 d P 90,000 2. What is the contribution margin of Division B? 2. P150,000 b. P 205,000 c. P 235,000 d. P 265,000

1-2 A and B are zutonomous divisions of a corporation. They kave no beginning or ending invertories, and the mumber of units produced is equal to the number of units sold. Following is financial information relating to the tvo divisions. P150,000 P 400.000 10,000 30,000 20,000 5,000 25,000 15,000 35,000 12,000 Sales Other revenue 15,000 65,000 40,000 15,000 55,000 Direct materials Direct labor Variable factory overhead Fixed factory overhead Variable S and A expense 30,000 Fixed S and A expense 60,000 Central corporate expenses (allocated) 20,000 1. What is the total contribution to corporate profits generated by Division A before allocation of central corporate expenses? 2 P18,000 b P 20,000 C P 30,000 d P 90,000 2. What is the contribution margin of Division B? 2. P150,000 b. P 205,000 c. P 235,000 d. P 265,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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