Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Chapter 17, Problem 19EP
To determine
Prepare statement of net cost for RA Agency for the year ended September 30, 2020.
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In the year 2017, Pyramid Consulting had the following contribution income statement:
PYRAMID CONSULTINGContribution Income StatementFor the Year 2017
Sales revenue
$ 1,300,000
Variable costs
Cost of services
$ 420,000
Selling and administrative
200,000
(620,000)
Contribution margin
680,000
Fixed Costs -selling and administrative
(285,000)
Before-tax profit
395,000
Income taxes (36%)
(142,200)
After-tax profit
$ 252,800
Prepare an abbreviated contribution income statement to verify that the solution to requirement (d) will provide the desired after-tax income.
Use rounded contribution margin (2 decimal places) for variable cost/contribution margin computations. Round your answers to the nearest dollar. Use rounded answers for subsequent calculations. Do not use negative signs with any of your answers.
PYRAMID CONSULTINGIncome Statement For the Year 2017
Sales
Answer
Variable costs
Answer
Contribution margin
Answer…
Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019, they generated $993,729 in service revenue. Their total cost (fixed and variable) per client was $1,217 and they served 268 clients during the year. If operating expenses for the year were $291,276 what was their operating income?
State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departments (Deposits and Loans). A summary of costs and other data for each department prior to allocation of service department costs for the year ended December 31 follows.
Administration
Communications
Facilities
Deposits
Loans
Direct costs
$
210,000
$
320,000
$
253,000
$
7,590,000
$
5,400,000
Employee hours
21,000
31,000
21,000
416,000
357,000
Number of employees
8
17
7
190
160
Square footage occupied
4,600
14,500
5,200
246,900
202,900
The costs of the service departments are allocated on the following bases: Administration, employee-hours; Communications, number of employees; and Facilities, square footage occupied.
Required:
a. Assume that the bank elects to distribute service department costs to production departments using the direct method. What amount of…
Chapter 17 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 17 - Prob. 1QCh. 17 - Prob. 2QCh. 17 - Prob. 3QCh. 17 - Prob. 4QCh. 17 - Prob. 5QCh. 17 - Prob. 6QCh. 17 - The federal government uses two groups of funds....Ch. 17 - Prob. 8QCh. 17 - Prob. 9QCh. 17 - Prob. 10Q
Ch. 17 - Prob. 12CCh. 17 - Prob. 13CCh. 17 - Access the most recent Financial Report of the...Ch. 17 - Prob. 15.1EPCh. 17 - Prob. 15.2EPCh. 17 - Prob. 15.3EPCh. 17 - Prob. 15.4EPCh. 17 - Prob. 15.5EPCh. 17 - Prob. 15.6EPCh. 17 - Which of the following is a correct mathematical...Ch. 17 - Which of the following is not a component of a...Ch. 17 - Fund Balance with the Treasury would be considered...Ch. 17 - Prob. 15.10EPCh. 17 - Which of the following federal funds is most...Ch. 17 - Following is a list of a number of accounts used...Ch. 17 - One amount is missing in the following trial...Ch. 17 - Use the data from Problem 1717 for this...Ch. 17 - Prob. 19EPCh. 17 - Prob. 20EPCh. 17 - Congress authorized the Flood Control Commission...Ch. 17 - Prob. 22EP
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