[The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $78 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 60,000 units and sold 57,000 units. Variable costs per unit: Manufacturing: $ 28 $ 12 $ 2 $ 3 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 1,260,000 $ 654,000 The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the remaining $24,000 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. 13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions. Answer is not complete. Income Statement Total East West Company $ 1,170,000 $4,446,000 0 1,881,000 8 1,386,000 Sales $ 3,276,000 Variable expenses Contribution margin Traceable fixed expenses 495,000 2,565,000 1,890,000 675,000 630,000 290,000 $ 1,600,000 Region segment margin Common fixed expenses not traceable to regions Net operating loss 1,935,000 675,000 1,284,000 $ 651,000
[The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $78 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 60,000 units and sold 57,000 units. Variable costs per unit: Manufacturing: $ 28 $ 12 $ 2 $ 3 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 1,260,000 $ 654,000 The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the remaining $24,000 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. 13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions. Answer is not complete. Income Statement Total East West Company $ 1,170,000 $4,446,000 0 1,881,000 8 1,386,000 Sales $ 3,276,000 Variable expenses Contribution margin Traceable fixed expenses 495,000 2,565,000 1,890,000 675,000 630,000 290,000 $ 1,600,000 Region segment margin Common fixed expenses not traceable to regions Net operating loss 1,935,000 675,000 1,284,000 $ 651,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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![[The following information applies to the questions displayed below.]
Diego Company manufactures one product that is sold for $78 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 60,000 units and
sold 57,000 units.
Variable costs per unit:
Manufacturing:
Direct materials
$ 28
$12
$ 2
$ 3
Direct labor
Variable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Fixed manufacturing overhead
Fixed selling and administrative expense
$ 1, 260,000
$ 654,000
The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its
fixed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the
remaining $24,000 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.
13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West
regions.
Answer is not complete.
Income Statement
Total
Company
East
West
O $4,446,000 $ 3,276,000 O$ 1,170,000 O
1,386,000 X
Sales
Variable expenses
1,881,000 X
495,000 X
Contribution margin
O 2,565,000
1,890,000
675,000
Traceable fixed expenses
630,000 O
290,000 O
Region segment margin
1,935,000
$ 1,600,000
$ 675,000
Common fixed expenses not traceable to
regions
Net operating loss
1,284,000 O
O $ 651,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc313077d-b0b1-4657-b5c2-ec05823fc6de%2F252ab1b4-792c-422a-be44-8bdd672f4a86%2Fry4e9zf_processed.png&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Diego Company manufactures one product that is sold for $78 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 60,000 units and
sold 57,000 units.
Variable costs per unit:
Manufacturing:
Direct materials
$ 28
$12
$ 2
$ 3
Direct labor
Variable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Fixed manufacturing overhead
Fixed selling and administrative expense
$ 1, 260,000
$ 654,000
The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its
fixed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the
remaining $24,000 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.
13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West
regions.
Answer is not complete.
Income Statement
Total
Company
East
West
O $4,446,000 $ 3,276,000 O$ 1,170,000 O
1,386,000 X
Sales
Variable expenses
1,881,000 X
495,000 X
Contribution margin
O 2,565,000
1,890,000
675,000
Traceable fixed expenses
630,000 O
290,000 O
Region segment margin
1,935,000
$ 1,600,000
$ 675,000
Common fixed expenses not traceable to
regions
Net operating loss
1,284,000 O
O $ 651,000
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