Deliver Company produces and sells only two products that are referred to as ROMS and PLATS. Production is "for order" only, and no finished goods inventories are maintained; work in process inventories are negligible. The following data have been extracted relating to last month: ROMS PLATS Sales Manufacturing costs: Materials Labor Overhead Selling expenses Administrative expenses An analysis has been made of the manufacturing overhead. Although the items listed above are traceable to the products, $37,050 of the overhead assigned to ROMS and $76,000 of that assigned to PLATS is fixed. The balance of the overhead is variable. Selling expenses consist entirely of commissions paid as a percentage of sales. Direct labor is completely variable. Administrative expenses in the data above are fixed and cannot be traced to the products but have been arbitrarily allocated to the products. $190,000 $190,000 $19,000 $58,900 $74,100 $17,100 $12,000 $26,000 $51,900 $87,000 $9,500 $18,000 Required: Calculate the segment margin for the product ROMS as it would appear in a segmented income statement in good form. The remaining portions of the statement do not have to be completed.

Deliver Company produces and sells only two products that are referred to as ROMS and PLATS. Production is "for order" only, and no finished goods inventories are maintained; work in process inventories are negligible. The following data have been extracted relating to last month: ROMS PLATS Sales Manufacturing costs: Materials Labor Overhead Selling expenses Administrative expenses An analysis has been made of the manufacturing overhead. Although the items listed above are traceable to the products, $37,050 of the overhead assigned to ROMS and $76,000 of that assigned to PLATS is fixed. The balance of the overhead is variable. Selling expenses consist entirely of commissions paid as a percentage of sales. Direct labor is completely variable. Administrative expenses in the data above are fixed and cannot be traced to the products but have been arbitrarily allocated to the products. $190,000 $190,000 $19,000 $58,900 $74,100 $17,100 $12,000 $26,000 $51,900 $87,000 $9,500 $18,000 Required: Calculate the segment margin for the product ROMS as it would appear in a segmented income statement in good form. The remaining portions of the statement do not have to be completed.

Name: Deliver Company produces and sells only two products that are referre
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Description: Deliver Company produces and sells only two products that are referred to as ROMS andPLATS. Production is “for order" only, and no finished goods inventories are maintained;work in process inventories are negligible.The following data have been extr

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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