Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information The Foundational 15 (Algo) [LO4-1, L04-2, LO4-3, LO4-4, L045] [The following information applies to the questions displayed below] Diego Company manufactures one product

image text in transcribedimage text in transcribed
image text in transcribedimage text in transcribed
Required information The Foundational 15 (Algo) [LO4-1, L04-2, LO4-3, LO4-4, L045] [The following information applies to the questions displayed below] Diego Company manufactures one product that is sold for $77 per unit in two geographic regionsEast and West. The following information pertains to the company's first year of operations in which it produced 59,000 units and sold 54.000 units. Variable costs per unit: Manufacturing: Direct materials 1% 27 Direct labor $ 19 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 1J298,008 Fixed selling and administrative expense $ 662,008 The company sold 41,000 units in the East region and 13,000 units in the West region It determined that $330000 of its fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52000 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 4-11 (Algo) 11. What would have been the company's absorption costing net operating income (loss) if it had produced and sold 54,000 units? 6 Answer is complete but not entirely correct. Net operating income 9 58.000 6 Foundational 4-13 (Algo) 13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions. x Answer is not complete. Income Statement Total East West Company Sales V $ 54,000 X $ 40,000 X $ 14,000 X Contribution margin V 54,000 40,000 14,000 Traceable fixed expenses V Region segment margin V 54,000 $ 40,000 $ 14,000 Common fixed expenses not traceable to regions 1,210,000 X Net operating loss $ (1, 156,000)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

The Legal Environment of Business A Critical Thinking Approach

Authors: Nancy K Kubasek, Bartley A Brennan, M Neil Browne

6th Edition

978-0132666688, 132666685, 132664844, 978-0132664844

Students also viewed these Accounting questions

Question

How to find if any no. is divisble by 4 or not ?

Answered: 1 week ago

Question

Explain the Pascals Law ?

Answered: 1 week ago

Question

What are the objectives of performance appraisal ?

Answered: 1 week ago