Using the data below for the Ace Guitar Company:   A Region     B Region     Sales $638,000     $522,000     Cost of goods sold 242,400     198,400     Selling expenses 153,100     125,300                   Support department expenses:                    Purchasing           $194,900        Payroll accounting           129,900 Allocate support department expenses proportional to the sales of each region. Determine the divisional operating income for the A and B regions. For interim calculations, round percentages to two decimal places and all other amounts to the nearest whole dollar.

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter25: Departmental Accounting
Section: Chapter Questions
Problem 3CE
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Using the data below for the Ace Guitar Company:

 

A Region

   

B Region

   

Sales

$638,000

   

$522,000

   

Cost of goods sold

242,400

   

198,400

   

Selling expenses

153,100

   

125,300

   
             

Support department expenses:

           

       Purchasing

         

$194,900

       Payroll accounting

         

129,900

Allocate support department expenses proportional to the sales of each region. Determine the divisional operating income for the A and B regions. For interim calculations, round percentages to two decimal places and all other amounts to the nearest whole dollar.

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