Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $239,000 in occupancy costs (which can be allocated to segments based on their square feet occupied) includes $60,000 in rental cost for a warehouse used by the Books and Reports Division for storage purposes. Assume that this cost could be avoided if the division were eliminated. g. Printing and paper costs other than for magazine subscriptions and for books and reports relate to the Continuing Education Division. h. General and administrative expenses include costs relating to overall administration of the association as a whole. The company's corporate staff does some mailing of materials for general administrative purposes. The expenses that can be traced or assigned to the corporate staff, as well as any other expenses that are not traceable to the segments, will be treated as common costs. It is not necessary to distinguish between variable and fixed costs. Required: 1. Prepare a segmented income statement for Music Teachers, Incorporated. This statement should show the segment margin for each division as well as results for the association as a whole.
Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $239,000 in occupancy costs (which can be allocated to segments based on their square feet occupied) includes $60,000 in rental cost for a warehouse used by the Books and Reports Division for storage purposes. Assume that this cost could be avoided if the division were eliminated. g. Printing and paper costs other than for magazine subscriptions and for books and reports relate to the Continuing Education Division. h. General and administrative expenses include costs relating to overall administration of the association as a whole. The company's corporate staff does some mailing of materials for general administrative purposes. The expenses that can be traced or assigned to the corporate staff, as well as any other expenses that are not traceable to the segments, will be treated as common costs. It is not necessary to distinguish between variable and fixed costs. Required: 1. Prepare a segmented income statement for Music Teachers, Incorporated. This statement should show the segment margin for each division as well as results for the association as a whole.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Personnel costs are 25% of salaries in the separate
divisions as well as for the corporate staff. The $239,000
in occupancy costs (which can be allocated to segments
based on their square feet occupied) includes $60,000 in
rental cost for a warehouse used by the Books and
Reports Division for storage purposes. Assume that this
cost could be avoided if the division were eliminated.
g. Printing and paper costs other than for magazine
subscriptions and for books and reports relate to the
Continuing Education Division.
h. General and administrative expenses include costs
relating to overall administration of the association as a
whole. The company's corporate staff does some mailing
of materials for general administrative purposes.
The expenses that can be traced or assigned to the
corporate staff, as well as any other expenses that are not
traceable to the segments, will be treated as common
costs. It is not necessary to distinguish between variable
and fixed costs.
Required:
1. Prepare a segmented income statement for Music
Teachers, Incorporated. This statement should show the
segment margin for each division as well as results for the
association as a whole.
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