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Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 57.000 units and sold 52,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense Income Statement The company sold 36,000 units in the East region and 16.000 units in the West region. It determined that $310,000 of its fixed selling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and the remaining $75,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. Sales Variable expenses Contribution margin Traceable fred expenses Region segment margin Common filed expenses not traceable to regions Net operating loss $ 25 $ 18 $3 $5 13. Prepare a contribution format segmented income statement that includes a Total column and col regions 3,000,000 $ 627,000 5 645,000 Total East Company $ 3.000.000 $ 2.700.000 $3,900.000 2.700.000 West 1.200.000 1.200,000 3.000.000 $ 2.700.000 $ 1.200.000 coludens for the East and West

Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 57.000 units and sold 52,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense Income Statement The company sold 36,000 units in the East region and 16.000 units in the West region. It determined that $310,000 of its fixed selling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and the remaining $75,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. Sales Variable expenses Contribution margin Traceable fred expenses Region segment margin Common filed expenses not traceable to regions Net operating loss $ 25 $ 18 $3 $5 13. Prepare a contribution format segmented income statement that includes a Total column and col regions 3,000,000 $ 627,000 5 645,000 Total East Company $ 3.000.000 $ 2.700.000 $3,900.000 2.700.000 West 1.200.000 1.200,000 3.000.000 $ 2.700.000 $ 1.200.000 coludens for the East and West

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 7E: Columbia Products Inc. has two divisions, Salem and Seaside. For the month ended March 31, Salem had...
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Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 57.000 units and sold 52,000 units. Variable costs per unit: Manufacturing: Direct saterials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense The company sold 36,000 units in the East region and 16.000 units in the West region. It determined that $310,000 of its fixed selling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and the remaining $75,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. Income Statement $ 25 5:18 $3 $5 Sales Variable expenses Contribution margin Traceable fred expenses Region segment margin Common filed expenses not traceable to regions Net operating loss $ 627,000 $ 645,000 13. Prepare a contribution format segmented income statement that includes a Total column and col regions. 3900,000 Total Company East West $ 3.000.000 $ 2,700.000 $200,000 2.700.000 1.200,000 coludens for the East and West 3.900 000 $2.700.000 $ 1.200.000 $3,900.000
Transcribed Image Text:Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 57.000 units and sold 52,000 units. Variable costs per unit: Manufacturing: Direct saterials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense The company sold 36,000 units in the East region and 16.000 units in the West region. It determined that $310,000 of its fixed selling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and the remaining $75,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. Income Statement $ 25 5:18 $3 $5 Sales Variable expenses Contribution margin Traceable fred expenses Region segment margin Common filed expenses not traceable to regions Net operating loss $ 627,000 $ 645,000 13. Prepare a contribution format segmented income statement that includes a Total column and col regions. 3900,000 Total Company East West $ 3.000.000 $ 2,700.000 $200,000 2.700.000 1.200,000 coludens for the East and West 3.900 000 $2.700.000 $ 1.200.000 $3,900.000
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