ndi Services Corporation, headquartered in Bengaluru, India, provides specialized information technology (IT) services and consists three divisions: (1) financial services, (2) health services, and (3) transportation services. For 2019, it recorded the following data: Sales revenues Financial Services $3,931,000 Variable costs (% of sales) 27% Traceable fixed costs 2,136,000 Health Services $5,269,000 2,697,000 39% Transportation Services $1,952,000 721,400 Total $11,152,000 44% Common fixed costs 5,554,400 1,180,000 Required: 1. Prepare a segment performance report showing the segment margin in dollars and percentages for all three divisions. Use Exhibit 12-3 as a guide. (Round "Percentage" answers to 2 decimal places.) INDI SERVICES CORPORATION Segment Performance Report Profit Centres Financial Services Health Services Transportation Services Total Company

ndi Services Corporation, headquartered in Bengaluru, India, provides specialized information technology (IT) services and consists three divisions: (1) financial services, (2) health services, and (3) transportation services. For 2019, it recorded the following data: Sales revenues Financial Services $3,931,000 Variable costs (% of sales) 27% Traceable fixed costs 2,136,000 Health Services $5,269,000 2,697,000 39% Transportation Services $1,952,000 721,400 Total $11,152,000 44% Common fixed costs 5,554,400 1,180,000 Required: 1. Prepare a segment performance report showing the segment margin in dollars and percentages for all three divisions. Use Exhibit 12-3 as a guide. (Round "Percentage" answers to 2 decimal places.) INDI SERVICES CORPORATION Segment Performance Report Profit Centres Financial Services Health Services Transportation Services Total Company

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 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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ndi Systems Inc., headquartered in Bengaluru, India, provides specialized information technology (IT) services and consists of three divisions: (1) insurance, (2) retail and (3) hospitality. For 2023, it recorded the following data: Insurance Retail Hospitality Total Sales revenues $ 4,017,000 $ 5,824,000 $ 1,944,000 $ 11,785,000 Variable costs (% of sales) 30 % 41 % 44 % Traceable fixed costs 2,121,000 2,852,000 724,500 5,697,500 Common fixed costs 1,200,000 Required: 1. Prepare a segment performance report showing the segment margin in dollars and percentages for all three divisions. Use Exhibit 12–3 as a guide. (Round "Percentage" answers to 2 decimal places.) 2. Which segment is most profitable? multiple choice Insurance Retail Hospitality
Indi Systems Inc., headquartered in Bengaluru, India, provides specialized information technology (IT) services and consists of three divisions: (1) insurance, (2) retail and (3) hospitality. For 2023, it recorded the following data: Sales revenues Variable costs (% of sales) Traceable fixed costs Common fixed costs 2. Which segment is most profitable? Insurance $ 4,500,000 2,150,000 O Insurance O Retail O Hospitality 30% Retail $ 5,594,000 2,768,450 Insurance Indi Systems Inc., Segment Performance Report Profit Centres 40% Retail Required: 1. Prepare a segment performance report showing the segment margin in dollars and percentages for all three divisions. Use Exhibit 12-3 as a guide. (Round "Percentage" answers to 1 decimal place, (i.e., 0.123 should be considered as 12.3%).) Hospitality $ 1,970,000 % 45% 730,560 Hospi Total $ 12,064,000 % 5,649,010 1,590,000 Total pany
Tabouk’s Manufacturing Company has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period of 2019: Total Company Garden Division Farm Division Sales revenue $390,000 $270,000 $120,000 Variable expenses 95,400 59,400 36,000 Contribution margin 294,600 210,600 84,000 Traceable fixed expenses 223,000 165,000 58,000 Division profit margin 71,600 $45,600 $26,000 Common fixed expense 46,800 Net operating income $24,800 As a manager at the company your responsibilities are planning and directing the company, you are required to: 1-What would be the company's overall net operating income if the company operated at its two division's break-even points?
Ready Products Incorporated operates two divisions, each with its own manufacturing facility. The accounting system reports the following data for 2022: HEALTH CARE PRODUCTS DIVISION Income Statement For the Year Ended December 31, 2022 Revenues Operating costs Operating income $ 1,200 770 $ 430 COSMETICS DIVISION Income Statement For the Year Ended December 31, 2022 Revenues Operating costs Operating income $ 960 460 $ 500 Ready estimates the useful life of each manufacturing facility to be 21 years. As of the end of 2022, the plant for the health care division is 4 years old, while the manufacturing plant for the cosmetics division is 6 years old. Each plant had the same cost at the time of purchase, and both have useful lives of 21 years with no salvage value. The company uses straight-line depreciation and the depreciation charge is $70,000 per year for each division. The manufacturing facility is the only long-lived asset of either division. Current assets are $312,000 in each…
Various Financial data for 2019 and 2020 follows. Calculate the total productivity measure and the partial measures for labour, raw materials, and energy for this company for both years. 2019 $75,000 Output: Input: Sales Total Productivity Partial Lab Productivity Partial Material Productivity Labour Materials Energy Other 19,150 21,620 12,250 8,300 61,320 For your answers, write value rounded to two decimal points. Include zeros if applicable and do not include any symbols. (Examples: 3.445 should be written as 3.45, 3.000 should be written as 3.00) 2019 2020 2020 $92,300 22,150 25,120 26,730 5,170 79,170 Partial Energy Partial Other For your answers below, type one of the options exactly as provided in the brackets. Based on the results the company overall is The company's best improvement is seen in The company's biggest decline is seen in (improving / declining). (labour / material / energy / other). (labour / material / energy / other).
Dunedin Bank has two operating departments (Retail and Commercial) and three service departments: Operations, Information Technology (IT), and Transactions. For the last period, the following costs and service department usage ratios were recorded: Supplying Department Transactions IT Operations Direct cost From: Transactions IT Operations Transactions Total 0 10% 50% $ 340,000 IT Using Department Operations Costs Operations $ 760,000 $ 228,000 $ 1,828,000 1,536,000 0 0 0 $760,000 Allocated to: Transactions 30% 0 $ 1,600,000 Retail Required: a. Allocate the service department costs to the two operating departments using the reciprocal method. 70% 30% 10% $ 3,800,000 Commercial Retail 76,000 $ 228,000 $ 228,000 914,000 182,800 731,200 1,075,200 460,800 $ 1,486,000 $ 1,420,000 Commercial 30% 30% 40% $ 2,350,000
Dunedin Bank has two operating departments (Retail and Commercial) and three service departments: Operations, Information Technology (IT), and Transactions. For the last period, the following costs and service department usage ratios were recorded: Supplying Department Transactions IT Operations Direct cost IT From: Operations Transactions Total Transactions 0 10% 60% $ 370,000 IT Using Department Operations 0 0 0 $ 790,000 Allocated to: Costs Operations Transactions 0 30% 0 Required: a. Allocate the service department costs to the two operating departments using the reciprocal method. Retail Retail $ 1,630,000 $ 3,830,000 0 70% 30% 10% Commercial 0 Commercial 30% 30% 30% $ 2,380,000
Tabuk’s Manufacturing Company has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period of 2019: Total Company Garden Division Farm Division Sales revenue $390,000 $270,000 $120,000 Variable expenses 95,400 59,400 36,000 Contribution margin 294,600 210,600 84,000 Traceable fixed expenses 223,000 165,000 58,000 Division profit margin 71,600 $45,600 $26,000 Common fixed expense 46,800 Net operating income $24,800 As a manager at the company your responsibilities are planning and directing the company, you are required to: Determine the break-even in sales dollars for the Garden Division's. Determine the break-even in sales dollars for the Farm Division's. Determine the company's overall break-even in sales dollars? What would be the company's overall net operating income if the company operated at its two division's break-even points?
Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019, they generated $720,000 in service revenue. Their total cost (fixed and variable) per client was $2,500 and they served 115 clients during the year. If operating expenses for the year were $302,000 what was their net income?
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
DJH Enterprises has 3 departments. Operating results for 2019 are as follows: Department 1 Department 2 Department 3 Sales Variable Costs Contribution Margin Direct fixed expenses Common fixed expenses Total fixed expenses Operating income (loss) $737,000 489,500 $247,500 $132,000 82,500 Select one: $214,500 $33,000 $354,200 315,700 $38,500 $29,700 33,000 $62,700 $(24,200) $941,600 662,200 $279,400 $179,300 103,400 $282,700 $(3,300) DJH is considering eliminating the departments that show losses. Assume that the direct fixed expenses could be avoided if the department is eliminated. What effect would elimination of Department 3 have on DJH's total operating income? a. It would decrease total operating income by $100,100. b. It would increase total operating income by $103,400. c. It would decrease total operating income by $279,400. d. None of these options are correct. e. It would decrease total operating income by $3,300.
Media Marketing Specialists operates in three geographic segments: New England, Southeast, and Midwest. Their most recent fiscal year ended in December, 2020. The company had $235,000 of common fixed expenses. Using the following information, prepare a segmented income statement by segment and in total for the company: New England: sales $112,000, traceable fixed expenses are 29% of sales Southeast: sales $208,000, traceable fixed expenses are 48% of sales Midwest: sales $185,000, traceable fixed expenses are 32% of sales