T1. Cumberland County Senior Services is a non-profit organization devoted to providing essential services to seniors who live in theirown homes within the Cumberland County area. Three services are provided for seniors-home nursing, Meals on Wheels, andhousekeeping. In the home nursing program, nurses visit seniors on a regular basis to check on their general health and to performtests ordered by their physicians. The Meals on Wheels program delivers a hot meal once a day to each senior enrolled in theprogram. The housekeeping service provides weekly housecleaning and maintenance services. Data on revenue and expenses forthe past year follow.RevenuesVariable expensesContribution marginFixed expenses:DepreciationLiability insuranceProgram administrators' salariesGeneral administrative overheadTotal fixed expensesOperating income (loss)Total$1,044,000581, 200462,800$74,08047,920125,400208,800456,200HoneNursing$301,600142,400159,2009,28022,40044,00060,320136,0006,600 $ 23,200Meals onWheelsHouse-keeping$464,000 $278,400250,000214,00042,4008,60040,40092,800184, 200$ 29,800188,80089,60022,40016,92041,00055,680136,000$(46,400)"Allocated on the basis of program revenues.The head administrator of Cumberland County Senior Services, Judith Ewa, is concerned about the organization's finances andconsiders the operating income of $6,600 last year to be razor-thin. (Last year's results were very similar to the results for previousyears and are representative of what would be expected in the future.) She feels that the organization should be building its financialreserves at a more rapid rate in order to prepare for the next inevitable recession. After seeing the above report, Ewa asked for moreinformation about the financial advisability of discontinuing the housekeeping program.The depreciation in the housekeeping category is for a small van that is used to carry the housekeepers and their equipment from jobto job. If the program were discontinued, the van would be donated to a charitable organization. Depreciation charges assume zerosalvage value. None of the general administrative overhead would be avoided if the housekeeping program were dropped, but theliability insurance and the salary of the program administrator would be avoided. Required:1-a. Compute the change in net operating income for the company as a whole if housekeeping program be discontinued.in net operating income by1-b. Should the housekeeping program be discontinued?O YesO No2. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of thevarious services?Ⓒ YesO No

In the decision making for a segment to continue or discontinue, Relevant costs are used for making…

Cumberland County Senior Services is a non-profit organization devoted to providing essential services to seniors who li own homes within the Cumberland County area. Three services are provided for seniors-home nursing, Meals on Whee housekeeping. In the home nursing program, nurses visit seniors on a regular basis to check on their general health and tests ordered by their physicians. The Meals on Wheels program delivers a hot meal once a day to each senior enrolled program. The housekeeping service provides weekly housecleaning and maintenance services. Data on revenue and ex the past year follow: HOME Home Nursing Meals on Wheels $301,600 $464,000 142,400 250,000 159,200 214,000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overheade Total fixed expenses Operating income (loss) Total $1,044,000 $ 581,200 462,800 74,080 47,920 125,400 208, 800 456,200 9,280 22,400 44,000 60,320 136,000 6,600 $ 23,200 42,400 8,600 40,400 92,800 184,200 $ 29,800 House- keeping $278,400 188,800 89,600 22,400 16,920 41,000 55,680 136,000 $(46,400)

Cumberland County Senior Services is a non-profit organization devoted to providing essential services to seniors who li own homes within the Cumberland County area. Three services are provided for seniors-home nursing, Meals on Whee housekeeping. In the home nursing program, nurses visit seniors on a regular basis to check on their general health and tests ordered by their physicians. The Meals on Wheels program delivers a hot meal once a day to each senior enrolled program. The housekeeping service provides weekly housecleaning and maintenance services. Data on revenue and ex the past year follow: HOME Home Nursing Meals on Wheels $301,600 $464,000 142,400 250,000 159,200 214,000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overheade Total fixed expenses Operating income (loss) Total $1,044,000 $ 581,200 462,800 74,080 47,920 125,400 208, 800 456,200 9,280 22,400 44,000 60,320 136,000 6,600 $ 23,200 42,400 8,600 40,400 92,800 184,200 $ 29,800 House- keeping $278,400 188,800 89,600 22,400 16,920 41,000 55,680 136,000 $(46,400)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 15E

See similar textbooks

Similar questions

Mercy Hospital is located near Springfield, Missouri. A religious organization created the not-for-profit hospital more than 90 years ago to meet the needs of area residents who could not otherwise afford adequate health care. Although the hospital is open to the public, its primary mission has always been to provide medical services for the poor.On December 23, 2017, a gentleman told the hospital’s chief administrative officer the following story: “My mother has been in your hospital since October 30. The doctors just told me that she will soon be well and can go home. I cannot tell you how relieved I am. The doctors, the nurses, and your entire staff have been wonderful. My mother could not have gotten better care. She owes her life to your hospital. “I am from Idaho. Now that my mother is on the road to recovery, I must return immediately to my business. I am in the process of finding a buyer for an enormous tract of land. When this acreage is sold, I will receive $30 million in…
Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors—home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Total Home Nursing Meals On Wheels House-keeping Revenues $ 930,000 $ 267,000 $ 405,000 $ 258,000 Variable expenses 474,000 119,000 198,000 157,000 Contribution margin 456,000 148,000 207,000 101,000 Fixed expenses: Depreciation 69,100 8,300 40,600 20,200 Liability insurance 44,100 20,900 7,800 15,400 Program administrators’ salaries 114,600 40,200 38,400 36,000 General administrative overhead* 186,000 53,400 81,000 51,600 Total fixed expenses 413,800 122,800 167,800 123,200 Net operating income (loss) $ 42,200 $ 25,200 $ 39,200 $ (22,200) *Allocated on the basis of…
Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors—home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Total Home Nursing Meals On Wheels House-keeping Revenues $ 927,000 $ 267,000 $ 402,000 $ 258,000 Variable expenses 465,000 114,000 195,000 156,000 Contribution margin 462,000 153,000 207,000 102,000 Fixed expenses: Depreciation 68,800 8,100 40,400 20,300 Liability insurance 43,200 20,200 7,600 15,400 Program administrators’ salaries 115,400 40,900 38,100 36,400 General administrative overhead* 185,400 53,400 80,400 51,600 Total fixed expenses 412,800 122,600 166,500 123,700 Net operating income (loss) $ 49,200 $ 30,400 $ 40,500 $ (21,700) *Allocated on the basis of…
Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors—home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Total Home Nursing Meals On Wheels House-keeping Revenues $ 923,000 $ 265,000 $ 405,000 $ 253,000 Variable expenses 470,000 111,000 202,000 157,000 Contribution margin 453,000 154,000 203,000 96,000 Fixed expenses: Depreciation 69,200 8,200 40,400 20,600 Liability insurance 43,800 20,300 7,600 15,900 Program administrators’ salaries 116,000 40,900 38,200 36,900 General administrative overhead* 184,600 53,000 81,000 50,600 Total fixed expenses 413,600 122,400 167,200 124,000 Net operating income (loss) $ 39,400 $ 31,600 $ 35,800 $ (28,000) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior…
Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors—home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Total Home Nursing Meals On Wheels House-keeping Revenues $ 919,000 $ 262,000 $ 402,000 $ 255,000 Variable expenses 471,000 112,000 205,000 154,000 Contribution margin 448,000 150,000 197,000 101,000 Fixed expenses: Depreciation 69,700 8,200 40,800 20,700 Liability insurance 43,100 20,100 7,400 15,600 Program administrators’ salaries 116,600 40,900 38,700 37,000 General administrative overhead* 183,800 52,400 80,400 51,000 Total fixed expenses 413,200 121,600 167,300 124,300 Net operating income (loss) $ 34,800 $ 28,400 $ 29,700 $ (23,300) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior…
Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors—home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Total Home Nursing Meals On Wheels House-keeping Revenues $ 929,000 $ 266,000 $ 406,000 $ 257,000 Variable expenses 468,000 116,000 196,000 156,000 Contribution margin 461,000 150,000 210,000 101,000 Fixed expenses: Depreciation 69,400 8,400 40,900 20,100 Liability insurance 43,400 20,500 7,400 15,500 Program administrators’ salaries 115,900 40,500 38,600 36,800 General administrative overhead* 185,800 53,200 81,200 51,400 Total fixed expenses 414,500 122,600 168,100 123,800 Net operating income (loss) $ 46,500 $ 27,400 $ 41,900 $ (22,800) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last year’s…
Jackson County Senior Services is a nonprofit organization devoted to providing essential ser-vices to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors—home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: The head administrator of Jackson County Senior Services, Judith Miyama, is concerned about the organization’s finances and considers the net operating income of $5,000 last year to be razor-thin. (Last year’s results were very similar to the results for previous years and are representative of what would be expected in the future.) She feels that the organization should be building its financial reserves at a more rapid rate in order to prepare for the next inevitable recession. After seeing the above report, Ms. Miyama asked for more information about the financial advisability of perhaps discontinuing the housekeeping program. The depreciation in housekeeping is for a…
For each of the following organizations, determine its UBTI and any related UBIT. Connect, Inc., an exempt organization, provides food for the homeless. It oper- ates a thrift store that sells used clothing to the general public. The thrift shop is staffed solely by four salaried employees. All of the clothes it sells are received as contributions. The $100,000 profit generated for the year by the thrift shop is used in Connect’s mission of providing food to the homeless. Small, Inc., an exempt organization, recorded gross unrelated business income of $900 and unrelated business expenses of $400.
a local social worker earning 14 per hour working for the state government contributed 550 hours of time at no charge to the Sunrise homeless shelter, a voluntary health and welfare entity. if not for these donated services. an additional staff person would have been hired by the entity. how should the Sunrise Homeless Shelter record the contributed services?
Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people.
A private not-for-profit entity has the following activities performed by volunteers who work at no charge. In which case should no contribution be reported? Choose the correct.a. A carpenter builds a porch on the back of one building so that patients can sit outside.b. An accountant does the organization’s financial reporting.c. A local librarian comes each day to read to the patients.d. A computer expert repairs the organization’s computer.
A group of high school seniors performs volunteer services for patients at a nearby nursing home. The nursing home would not otherwise provide these services, such as wheeling patients in the park and reading to them. At the minimum wage rate, these services amount to $21,320, but their actual value is estimated to be $27,400. In the nursing home’s statement of activities, what amount should be reported as public support? $27,400 $21,320 $6,080 $–0–