U company is having 2 divisions the Adif division and Wolf division. The total income of the company is $17,500. The segment margin for Adif division and Wolf division is $75,800 and $52,600 respectively. Determine the amount of common fixed expense not traceable to the www individual divisions a. $110,900 b. $128,400 c. $23,200 d. $15,450

U company is having 2 divisions the Adif division and Wolf division. The total income of the company is $17,500. The segment margin for Adif division and Wolf division is $75,800 and $52,600 respectively. Determine the amount of common fixed expense not traceable to the www individual divisions a. $110,900 b. $128,400 c. $23,200 d. $15,450

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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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Subject-accounting
Deliveries to the retailers Sh.so 2,400,000 Set-up costs 6,000,000 Purchase order costs 3,600,000 Total overheads 12,000,000 All director labor is paid at $ 5 per hour. The company holds no inventories. Required: a. Calculate the total profit on each of General Motor's three types of products using each of the following methods: 1. The existing method based upon labor hours 2. Activity based costing
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