Using the data below for the Ace Guitar Company:A RegionB RegionSales$877,500$472,500Cost of goods sold333,500179,500Selling expenses210,600113,400Support department expenses:Purchasing$226,800Payroll accounting151,200Allocate support department expenses proportional to the sales of each region. Determine the divisional operating income forthe A and B regions. For interim calculations, round percentages to two decimal places and all other amounts to thenearest whole dollar.A Region Operating IncomeB Region Operating Income%24

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Answered: Using the data below for the Ace Guitar…

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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Divisional Income Statements The following data were summarized from the accounting records for Ruiz Industries Inc. for the year ended November 30, 20Y8: Cost of goods sold: Support department allocations: Commercial Division $420,760 Commercial Division $57,380 Residential Division 203,490 Residential Division 35,250 Administrative expenses: Sales: Commercial Division $76,500 Commercial Division $637,510 Residential Division 72,680 Residential Division 363,380 Prepare divisional income statements for Ruiz Industries Inc. Ruiz Industries Inc. Divisional Income Statements For the Year Ended November 30, 20Y8 Commercial Division Residential Division $ $
Cost Department Allocations 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 $34,760, and the Purchasing Department had expenses of $15,660 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Sales Number of employees: Weekly payroll (52 weeks per year) Monthly payroll Number of purchase requisitions per year Number of payroll checks: Weekly payroll x 52 Monthly payroll x 12 Total Residential $ 327,000 Support department allocations: Payroll Department Purchasing Department 175 32 2,300 Total Commercial $ 434,000 Required: a. Determine the total amount of payroll checks and purchase requisitions processed per year by the…
Profit Center Responsibility Reporting A-One Freight Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) evaluates divisional performance using operating income as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31, 20Y3. Revenues—Air Division $ 1,086,300 Revenues—Rail Division 1,307,900 Revenues—Truck Division 2,315,700 Operating Expenses—Air Division 688,400 Operating Expenses—Rail Division 778,400 Operating Expenses—Truck Division 1,400,400 Corporate Expenses—Shareholder Relations 165,200 Corporate Expenses—Customer Support 546,000 Corporate Expenses—Legal 262,400 General Corporate Officers’ Salaries 364,900 The company operates three service departments: Shareholder Relations, Customer Support, and Legal. The Shareholder Relations Department conducts a variety of services for shareholders of the company. The Customer Support Department…
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Divisional income statements with support department allocations Horton Technology has two divisions. Consumer and Commercial and two corporate support departments, Tech Services and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: ACCT 102 Chapter 24 - Homework assignment take frame Teen Services Department 2770,000 292,000 Purchasing Department Other corporate administrative expenses Total expense The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Services Department allocates costs to the divisions based on the number of computers in the department, and the Purchasing Department allocates costs to the divisions based on the number of purchase orders for each department. The services used by the two divisions are as follows: Consumer Division Commercial Division Total Tech Services $1,519,500 260 410 computers 670 457,000 Purchasing 5,100 purchase orders 1,322,900…
Using the data below for the Ace Guitar Company: A Region B Region Sales $500,000 $900,000 Cost of goods sold 200,000 300,000 Selling expenses 150,000 275,000 Support department expenses: Purchasing $90,000 Payroll accounting 30,000 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 one decimal place and all other amounts to the nearest whole dollar. A Region Operating Income $fill in the blank 1 B Region Operating Income $fill in the blank 2
Performance Eval - Decentralized Ops: The pictures contain all the information. Thanks!
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 $90,784, and the Purchasing Department had expenses of $31,270 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Residential Commercial GovernmentContract Sales $ 654,000 $ 866,000 $ 1,989,000 Number of employees: Weekly payroll (52 weeks per year) 250 80 85 Monthly payroll 28 39 26 Number of purchase requisitions per year 2,200 1,600 1,500 a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. Residential Commercial Government Contract…
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 $51,792, and the Purchasing Department had expenses of $22,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Residential Commercial GovernmentContract Sales $ 460,000 $ 609,000 $ 1,399,000 Number of employees: Weekly payroll (52 weeks per year) 170 65 70 Monthly payroll 36 47 34 Number of purchase requisitions per year 2,100 1,500 1,400 a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. Residential Commercial Government Contract…

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