4) Republic Resorts owns numerous hotels on each of the Hawaiian Islands. The company's performance reporting system is structured around the firm's organizational structure, with information flowing from operating departments at a particular property and later respectively grouped by individual hotel, island operation (le, division, and the company as a whole. Which of the following best depicts the detail level of the information given to a department manager versus that reported to a company vice-president? Department Manager Company Vice-President A. Somewhat detailed Somewhat detailed B. Somewhat detailed Somewhat summarized Somewhat summarized Somewhat detailed D. Somewhat summarized Somewhat summarized E. None of the answers is correct. 5) Management of Wee Ones (WO). an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data: Budgeted Actual Budgeted Actual Center Revenue Revenue Direct Costs Direct Costs Downtown $ 422,500 $ 427,500 $ 367,200 $ 390,000 Irvine 676,080 581,400 535,500 483,600 H. Beach 591,500 701,100 627,300 686,480 Totals $1,690,000 $1,710, eee $1,530,00 $1,560,000 wo's advertising, which is handled by the home office. Is not reflected in the preceding figures and amounted to $72.000. Assume that management used the allocation base that is most influenced by advertising effort and consistent with sound managerial accounting practices. How much advertising would be allocated to the Irvine center? 6) The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Revenues Variable operating expenses Controllable fixed expenses Noncontrollable fixed expenses Restin, Inc. $880,000 482,000 225,000 75,000 Los Angeles Division $240,000 132,000 70,000 20,000 Bay Area Central Valley Division Division $275,000 $365,000 145,000 205,000 80,000 75,000 25,000 30,000 In addition, the company incurred common fixed costs of $19,500. Assuming use of a responsibility accounting system, which of the following amounts should be used to evaluate the performance of the Los Angeles division manager? 3) Sandy Shores Corporation operates two stores: J and K. The following information relates to J: $1,800,000 700,000 Sales revenue Variable operating expenses Fixed expenses : Traceable to I and controllable by J Traceable to ) and controllable by others 375,000 90,000 J's segment contribution margin is
