Question
Budgetary Performance forCost Center Georgia Company's costs were under budget by $19,700. The company is divided into Left and Right regions. The Left Region's costs
- Budgetary Performance forCost Center
Georgia Company's costs were under budget by $19,700. The company is divided into Left and Right regions. The Left Region's costs were under budget by $1,400.
Determine the amount that the Right Region's costs were over or under budget. $_________ over budget/Under budget
2.Service Department Charges
The centralized employee Travel Department of Howard Company has expenses of $102,300. The department has serviced a total of 3,100 travel reservations for the period. The South Division has made 310 reservations during the period, and the West Division has made 2,790 reservations.
How much should each division be charged for travel services? Do not round interim calculations.
South Division $____________
North Division $__________
3.Income from Operations forProfit Center
The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of 4,000 hours of service for the period. The Retail Division has used 2,750 hours of computer technology service during the period, and the Commercial Division has used 1,250 hours of computer technology service. Additional data for the two divisions is following below:
Retail Division Commercial Division
Sales $2,150,000 $1,200,000
Cost of goods sold 1,300,000 800,000
Selling expenses 150,000 175,000
Determine the divisional income from operations for the Retail Division and the Commercial Division. Do not round interim calculations.
Hardy CompanyDivisional Income from Operations
Retail Division Commercial Division
Sales __________ __________
Cost of goods sold __________ __________
Gross profit __________ __________
Selling expenses __________ _________
Income from operations before __________ __________
service department charges
Service department charges __________ ___________
Income from operations$ __________ __________
4.Profit Margin,Investment Turnover, andROI
Cash Company has income from operations of $38,896, invested assets of $221,000, and sales of $486,200. Use theDuPont formulato compute the return on investment. If required, round your answers to two decimal places.
a.Profit margin __________%
b.Investment turnover __________
c.Return on investment __________%
5.Residual Income
The Consumer Division of Galena Company has income from operations of $105,270 and assets of $319,000. The minimum acceptable return on assets is 11%.
What is the residual income for the division? $__________
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