The Ski department reports sales of $620,000 and cost of goods sold of $434,000. Its expenses follow. Service department expenses Office $ 24,400 Direct expenses Salaries Depreciation Indirect expenses $ 116,000 Rent 48,400 $ 15,100 1. For the Ski department only, prepare a departmental Income statement. 2. & 3. For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Skl department be eliminated?

The Ski department reports sales of $620,000 and cost of goods sold of $434,000. Its expenses follow. Service department expenses Office $ 24,400 Direct expenses Salaries Depreciation Indirect expenses $ 116,000 Rent 48,400 $ 15,100 1. For the Ski department only, prepare a departmental Income statement. 2. & 3. For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Skl department be eliminated?

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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The Ski department reports sales of $600,000 and cost of goods sold of $420,000. Its expenses follow. Indirect expenses $ 15,500 Service department expenses Office $ 22,600 Direct expenses Salaries Depreciation 1. For the Ski department only, prepare a departmental income statement. 2. & 3. For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? $ 117,000 Rent 49,600 Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? Departmental Contribution to Overhead Gross profit Direct expenses For Year Ended December 31 Total direct expenses Departmental contribution to overhead Should the Ski department be eliminated? Ski Department $
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Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted. Sales $ 610,000 Cost of goods sold 435,000 Salaries 113,000 ($25,000 is indirect) Utilities 15,600 ($5,700 is indirect) Depreciation 54,400 ($17,400 is indirect) Office expenses 29,600 (all indirect) 1. Prepare a departmental income statement for 2019.2. & 3. Prepare a departmental contribution to overhead report for 2019. Based on these two performance reports, should Jansen eliminate the ski department?
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The following is a summarized income statement for McClaron Manor Co.'s profit center 12608 for April: Contribution Margin $ 176,000 Period Expenses $ 12,000 Manager' s Salary $ 2,100 Corporate Expense Allocation $ 8,100 $ (22,200 ) Net Income $ 153,800 Which of the following amounts is most likely subject to the control of the profit center's manager? (CPA, adapted) Multiple Choice Contribution Margin of $176,000 and Period Expenses of $14,100. Contribution Margin of $176,000. Contribution Margin of $176,000 and Period Expenses of $22,200. Contribution Margin of $176,000 and Period Expenses of $12,000.
A company has two departments, Y and Z that incur advertising expenses of $19,000. Advertising expenses are allocated based on sales. Department Y has sales of $300,000 and Department Z has sales of $700,000. The advertising expense allocated to Departments Y and Z, respectively, are: Multiple Choice O O O $5,700; $13,300. $13,300; $5,700. $8,200; $10,800.
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