Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Textbook Question
Chapter 24, Problem 2E
The following data were summarized from the accounting records for Ruiz Industries Inc. for the year ended November 30, 20Y8:
Prepare divisional income statements for Ruiz Industries Inc.
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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
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Division
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Tech
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$1,519,500
260
410
computers
670
457,000
Purchasing
5,100 purchase
orders
1,322,900…
In divisional income statements prepared for LeFevre 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 $63,568, and the Purchasing Department had expenses of $25,370 for the year. The following annual data for Residential, Commercial, and Government
Contract divisions were obtained from corporate records:
Government
Residential Commercial
Contract
Sales
$530,000
$703,000
$1,614,000
Number of employees:
Weekly payroll (52 weeks per year)
145
65
70
Monthly payroll
34
45
32
Number of purchase
requisitions per year
1,800
1,300
1,200
a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.
Government
Residential
Commercial
Total
Contract
Number of payroll checks:
Weekly payroll
Monthly payroll
Total…
In divisional income statements prepared for LeFevre 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 $63,568, and the Purchasing Department had expenses of $25,370 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:
Residential
Commercial
GovernmentContract
Sales
$530,000
$703,000
$1,614,000
Number of employees:
Weekly payroll (52 weeks per year)
145
65
70
Monthly payroll
34
45
32
Number of purchase
requisitions per year
1,800
1,300
1,200
a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.
Residential
Commercial
Government Contract
Total…
Chapter 24 Solutions
Financial And Managerial Accounting
Ch. 24 - Differentiate between centralized and...Ch. 24 - Differentiate between a profit center and an...Ch. 24 - Weyerhaeuser Co. (WY) developed a system that...Ch. 24 - What is the major shortcoming of using operating...Ch. 24 - In a decentralized company in which the divisions...Ch. 24 - Prob. 6DQCh. 24 - (a) Explain how return on investment might lead a...Ch. 24 - Prob. 8DQCh. 24 - When is the negotiated price approach preferred...Ch. 24 - Prob. 10DQ
Ch. 24 - Budgetary performance for cost center Vinton...Ch. 24 - Support department allocations The centralized...Ch. 24 - Prob. 3BECh. 24 - Profit margin, investment turnover, and ROI Briggs...Ch. 24 - Residual income Obj. The Commercial Division of...Ch. 24 - Transfer pricing The materials used by the...Ch. 24 - Budget performance reports for cost centers...Ch. 24 - The following data were summarized from the...Ch. 24 - Prob. 3ECh. 24 - Prob. 4ECh. 24 - Service department charges In divisional income...Ch. 24 - Varney Corporation, a manufacturer of electronics...Ch. 24 - Horton Technology has two divisions, Consumer and...Ch. 24 - Rocky Mountain Airlines Inc. has two divisions...Ch. 24 - Championship Sports Inc. operates two divisionsthe...Ch. 24 - The operating income and the amount of invested...Ch. 24 - The operating income and the amount of invested...Ch. 24 - Prob. 12ECh. 24 - The condensed income statement for the Consumer...Ch. 24 - Prob. 14ECh. 24 - Data are presented in the following table of...Ch. 24 - Prob. 16ECh. 24 - Materials used by the Instrument Division of...Ch. 24 - Prob. 18ECh. 24 - GHT Tech Inc. sells electronics over the Internet....Ch. 24 - Profit center responsibility reporting for a...Ch. 24 - Divisional income statements and return on...Ch. 24 - Effect of proposals on divisional performance A...Ch. 24 - Divisional performance analysis and evaluation The...Ch. 24 - Prob. 6PACh. 24 - Budget performance report for a cost center The...Ch. 24 - Profit center responsibility reporting for a...Ch. 24 - Divisional income statements and return on...Ch. 24 - Effect of proposals on divisional performance A...Ch. 24 - Prob. 5PBCh. 24 - Prob. 6PBCh. 24 - Kelly Kitchens operates both franchised and...Ch. 24 - Panera Bread Company (PNRA) operates over 2,000...Ch. 24 - Papa Johns International, Inc. (PZZA), operates...Ch. 24 - Panera Bread Company (PNRA) operates over 2,000...Ch. 24 - McDonalds Corporation (MCD) operates company-owned...Ch. 24 - Prob. 1TIFCh. 24 - Prob. 2TIFCh. 24 - Communication The Norse Division of Gridiron...Ch. 24 - The three divisions of Yummy Foods are Snack...Ch. 24 - Last Resort Industries Inc. is a privately held...Ch. 24 - Sara Bellows, manager of the telecommunication...Ch. 24 - Most firms allocate corporate and other support...Ch. 24 - Prob. 3CMACh. 24 - Prob. 4CMA
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- Divisional income statements The following data were summarized from the accounting records for Vintage Construction Company for the year ended October 31, 20Y3. Prepare divisional income statements for Vintage Construction Company.arrow_forwardPlease Do not Give image formatarrow_forwardIn 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…arrow_forward
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