segmented income statement
Rayya Sdn. Bhd. produces two types of cakes: butter cake and chocolate cake. Of the
two, chocolate cake is the more popular. The following information was provided for
the coming year.
Table 5: Production Costs
Additional information:
• Sales commission of 5% of sales revenue is paid for each cakes.
• Direct fixed selling and administrative expenses was estimated to be RM4,000 for
the butter cake and RM10,000 for the chocolate cake.
• Common fixed
RM18,000.
• Common selling and administrative expenses was estimated to be RM8,000.
Required:
Develop a segmented income statement for Rayya Sdn. Bhd. for the coming year using
variable costing.
Details Butter Cake
RM
Chocolate Cake
RM
Sales 80,000 180,000
Variable cost of goods sold 10,000 30,000
Direct fixed overhead 20,000 100,000
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