1. Using the data below for Ace Guitar Company: Region A Region B Sales $571,500 $698,500 Cost of goods sold 217,200 265,400 Selling expenses 137,200 167,600 Service department expenses Purchasing $213,400 Payroll accounting 142,200 Allocate service department expenses proportionally to the sales of each region, determine the divisional income from operations for the Regions A and B. For interim calculations, round the percentages to one decimal place. Region A $ Region B $
1. Using the data below for Ace Guitar Company: Region A Region B Sales $571,500 $698,500 Cost of goods sold 217,200 265,400 Selling expenses 137,200 167,600 Service department expenses Purchasing $213,400 Payroll accounting 142,200 Allocate service department expenses proportionally to the sales of each region, determine the divisional income from operations for the Regions A and B. For interim calculations, round the percentages to one decimal place. Region A $ Region B $
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 14.8E: Corrections to service department charges Panda Airlines Inc. has two divisions organized as profit...
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1.
Using the data below for Ace Guitar Company:
Region A | Region B | ||||
Sales | $571,500 | $698,500 | |||
Cost of goods sold | 217,200 | 265,400 | |||
Selling expenses | 137,200 | 167,600 | |||
Service department expenses | |||||
Purchasing | $213,400 | ||||
Payroll accounting | 142,200 |
Allocate service department expenses proportionally to the sales of each region, determine the divisional income from operations for the Regions A and B. For interim calculations, round the percentages to one decimal place.
Region A | $ |
Region B | $ |
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