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New Sarum Diner has two main sales revenue outlets: a dining room and a snack bar. Sales revenue and direct costs for each sales area
New Sarum Diner has two main sales revenue outlets: a dining room and a snack bar. Sales revenue and direct costs for each sales area and indirect costs that have not been allocated are as follows for April 2022. Management believes that the $29,000 of indirect costs should be allocated to the two operating departments using sales revenue as the basis. Provide the new monthly income statement with the appropriate allocation of indirect costs.
Do not enter dollar signs or commas in the input boxes.
New Sarum Diner | |||
Income Statement | |||
For the Month Ended April 30, 2022 | |||
Dining Room | Snack Bar | Total | |
Sales Revenue | $116,000 | $116,000 | $232,000 |
Direct Costs | $81,200 | $87,000 | $168,200 |
Contribution Income | $34,800 | $29,000 | $63,800 |
Indirect Costs | $Answer | $Answer | $29,000 |
Operating Income | $Answer | $Answer | $34,800 |
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