RevenuesCost of salesSelling, General andRegion I$ 1,209,000454,500433,500Region II$ 1,659,000814,500643,500Region III$ 2,259,0001,144,500863,500TotalCorporation$ 5,127,0002,413,5001,940,500Administrative (all fixed)Corporate overheadInformation on the division assets in the three regions of Lauderdale Corporation follows:Region IRegion II$ 709,000639,0001,301,000450,000Region IIILauderdale Corporation has a cost of capital of 8.6 percent.Required:a. Compute residual income for the three regions. Ignore taxes.b. How have these regions performed?

For Region I: 1. Net Operating Income (NOI): Revenues: $1,209,000 Cost of Sales: -$454,500 Selling,…

Answered: Revenues Cost of sales Selling, General…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 5E: Service department charges In divisional income statements prepared for Demopolis Company, the...

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Service department charges In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of 64,560, and the Purchasing Department had expenses of 40,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: A. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. B. Using the cost driver information in (A), determine the annual amount of payroll and purchasing costs allocated to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. C. Why does the Residential Division have a larger support department allocation than the other two divisions, even though its sales are lower?
am. 1111.
The accounting records of reynolds corporation solving this question general Accounting
COMPUTING OPERATING INCOME The sales, cost of goods sold, and total operating expenses of departments A and B of Ash Company are as follows: Compute the departmental operating income for each department.
Responsibility accounting holds managers responsible for _______. A. all costs charged to their subunit B. all costs charged to their subunit plus a share of companywide fixed costs C. only the costs that they can control D. only the costs that they have personally approved
Division Accounting Personnel Information Technology Sales Production 8. 9. 10. 90 Number of Employees No Shows Pald (Non- Cancellations Registrations Attended refundable) (Refundable) 50 26 14 (I) 208 150 185 TRAINING ATTENDANCE AND RELATED COSTS BY DIVISION TRAINING ATTENDANCE C. $40,000. D. $41,600. 81 156 102 157 The value of (III) is A. $31,200. B. $32,448. The value of (IV) is A. $6,525. B. $7,050. C. $9,225. D. $9,450. 6 28 31 23 3 24 17 5 Attendance Ratio of Those Registered 0.52 0.90 (II) Adjusted Cost per Total Cost per Salary Registration Registration Cancellation Training Registration (5) (5) Payment (5) Refunds ($) Cost (5) (5) 6,700 100 5,000 1,000 10,700 268 2,700 225 (IV) 47,200 6,000 0.85 4,625 0.75 10,400 200 75 The value of (V) (rounded to the nearest whole dollar) is A. $71. B. $83. C. $86. D. $98. RELATED COSTS Registration Cost 140 60 6,750 (III) 21,000 11,100 4,800 106 257 185 2,380 24,620 300 15,425 (V)
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3 What would be the classification of corporate controller's salary? Select one: a. Product cost b. Manufacturing cost c. Administrative cost d. Selling cost
I want to correct answer accounting
Corrections to service department charges Panda Airlines Inc. has two divisions organized as profit centers, the Passenger Division and the Cargo Division. The following divisional income statements were prepared The service department charge rate for the service department costs was based on revenues. The following additional information is available a.Does the operating income for the two divisions accurately measure performance? b.Using service charge rates for service department charges, correct the divisional income statements.
When the manager has the responsibility and authority to make decisions that affect Costs and revenues but no responsibility for or authority over assets invested in the department, the department is called: A. A cost center B. A profit center C. An investment center D. A service department

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