Manford Inc. has two divisions-Refrigerators and Dish Washer. Manford Company Segmented Income Statements For the Current Fiscal Year Ended December 31 Refrigerator Dish Washer Division Division Sales $10,000,000 $5,400,000 Cost of goods sold $4,200,000 $2,660,000 Gross margin $5,800,000 $2,740,000 Allocated overhead (from corporate) $940,000 $740,000 Selling and administrative expenses $780,000 $360,000 Operating income $4,080,000 $1,640,000 Income tax expense (45%) $1,836,000 $738,000 Net income $2,244,000 $902,000 Assume the Dish Washer Division has average operating assets totaling $6,560,000 for the year and the company's cost of capital rate is 15 percent. What is the residual income for the Dish Washer division?

Manford Inc. has two divisions-Refrigerators and Dish Washer. Manford Company Segmented Income Statements For the Current Fiscal Year Ended December 31 Refrigerator Dish Washer Division Division Sales $10,000,000 $5,400,000 Cost of goods sold $4,200,000 $2,660,000 Gross margin $5,800,000 $2,740,000 Allocated overhead (from corporate) $940,000 $740,000 Selling and administrative expenses $780,000 $360,000 Operating income $4,080,000 $1,640,000 Income tax expense (45%) $1,836,000 $738,000 Net income $2,244,000 $902,000 Assume the Dish Washer Division has average operating assets totaling $6,560,000 for the year and the company's cost of capital rate is 15 percent. What is the residual income for the Dish Washer division?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
What is the residual income for the dish washer devision?
Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment Rent Utilities Share of office department expenses Total expenses Income Phone Earbuds Combined $ 200,000 98,000 $ 95,000 $ 295,000 58,900 102,000 36,100 156,900 138,100 20,000 8,700 28,700 1,150 450 1,600 2,100 300 2,400 7,060 3,840 10,900 2,700 1,800 4,500 10,500 4,500 43,510 19,590 $ 58,490 $ 16,510 15,000 63,100 $ 75,000 Required: Prepare a departmental contribution to overhead report. Garcia Company Departmental Contribution to Overhead For Year Ended December 31 Gross profit Direct expenses Phone Earbuds Combined 0 0 0 Total direct expenses 0 0 0 Departmental…
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Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Phone $ 140,000 68,600 71,400 Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation Equipment Rent Utilities Share of office department expenses Total expenses Income 22,000 650 2,000 7,050 2,600 12,000 46,300 $ 25,100 Required: Prepare a departmental contribution to overhead report. Earbuds $ 95,000 58,900 36,100 7,400 350 900 3,780 2,300 5,000 19,730 $ 16,370 Combined $ 235,000 127,500 107,508 29,408 1,000 2,900 10,830 4,900 17,000 66,038 $ 41,470
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Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below. Total Company Division L $151,000 92,110 58,890 30,870 Division Q $390,000 195,000 195,000 97,600 $ 97,400 Sales $541,000 287,110 Variable expenses Contribution margin Traceable fixed expenses 253,890 128,470 Segment margin 125,420 $2 3 Common fixed expenses 70,310 Net operating income $ 55,110 The break-even in sales dollars for Division Q is closest to: (Round your Intermedlate calculations to 2 decimal places.) Multiple Cholce $327.250 O $195.20o S335.820 11:05 AM 自 0 W 92°F AQI 61 9/24/2021 here to search DELL