3. Segmented Income StatementMr. Rastaman, the QC branch manager of ABZ Company, recently reported annual sales of P 1,000,000 andpresented the following cost information:REQUIRED:Variable manufacturing costsAllocated corporate overhead costsVariable selling & administrative expensesControllable fixed costs traceable to QC branchUncontrollable fixed costs traceable to QC branch440,000170,000A) Manager (Mr. Rastaman)B) Business unit (QC Branch of ABZ Corp)220,000140,000230,0001. Determine the following:A) Manufacturing contribution marginB) Controllable or performance marginC) Segment margin2. Identify the appropriate margin that shall be used to evaluate the performance of:

Given in the question: Annual Sales = P1,000,000 Variable Manufacturing Cost = P440,000

Determine the following: A) Manufacturing contribution margin B) Controllable or performance margin C) Segment margin Identify the appropriate margin that shall be used to evaluate the performance of: A) Manager (Mr. Rastaman) B) Business unit (QC Branch of ABZ Corp)

Determine the following: A) Manufacturing contribution margin B) Controllable or performance margin C) Segment margin Identify the appropriate margin that shall be used to evaluate the performance of: A) Manager (Mr. Rastaman) B) Business unit (QC Branch of ABZ Corp)

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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Question

3. Segmented Income Statement
Mr. Rastaman, the QC branch manager of ABZ Company, recently reported annual sales of P 1,000,000 and
presented the following cost information:
REQUIRED:
Variable manufacturing costs
Allocated corporate overhead costs
Variable selling & administrative expenses
Controllable fixed costs traceable to QC branch
Uncontrollable fixed costs traceable to QC branch
440,000
170,000
A) Manager (Mr. Rastaman)
B) Business unit (QC Branch of ABZ Corp)
220,000
140,000
230,000
1. Determine the following:
A) Manufacturing contribution margin
B) Controllable or performance margin
C) Segment margin
2. Identify the appropriate margin that shall be used to evaluate the performance of:

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