Question
equired information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $78 per unit in two
equired information
[The following information applies to the questions displayed below.]
Diego Company manufactures one product that is sold for $78 per unit in two geographic regionsthe East and West regions. The following information pertains to the company's first year of operations in which it produced 60,000 units and sold 57,000 units.
Variable costs per unit:Manufacturing:Direct materials$28Direct labor$12Variable manufacturing overhead$2Variable selling and administrative$3Fixed costs per year:Fixed manufacturing overhead$1,260,000Fixed selling and administrative expenses$654,000
The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expenses is traceable to the West region, $290,000 is traceable to the East region, and the remaining $24,000 is a common fixed cost. 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.
a contribution format segmented income statement that includes a Total column and columns for the East and West regions.
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