Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Diego Company manufactures one product that is sold for $77 per unit in two geographic regions-the East and West regions. The following information pertains

image text in transcribed

Diego Company manufactures one product that is sold for $77 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 48,000 units and sold 43,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 27 $ 12 $ 3 $ 5 $ 864,000 $ 456,000 The company sold 33,000 units in the East region and 10,000 units in the West region. It determined that $220,000 of its fixed selling and administrative expense is traceable to the West region, $170,000 is traceable to the East region, and the remaining $66,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. Foundational 6-13 (Algo) 13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions. Sales Variable expenses Contribution margin Answer is complete but not entirely correct. Income Statement Traceable fixed expenses Region segment margin Common fixed expenses not traceable to regions Net operating loss Total Company $3,311,000 ( East West $ 2,541,000 ( $770,000 2,021,000 1,551,000 1,290,000 990,000 470,000 300,000 390,000 220,000 x 170,000 900,000 $ 770,000 $ 130,000 930,000 $ (30,000)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

12th edition

133451860, 978-0133451863

More Books

Students also viewed these Accounting questions

Question

Where did we miss opportunities?

Answered: 1 week ago

Question

How did we manage the project implementation?

Answered: 1 week ago

Question

How did we design the project information?

Answered: 1 week ago