Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Finance Department at Mark Company produced the following segment margin statement for the most recent period. Division A Division B Total Revenue $1,302,800

The Finance Department at Mark Company produced the following segment margin statement for the most recent period. Division A Division B Total Revenue $1,302,800 $1,954,200 $3,257,000 $480,000 $531,000 $1,011,000 Variable Costs Contribution Margin $822,800 $1,423,200 $2,246,000 Allocated Fixed Costs $430,000 $645,000 $1,075,000 Segment Margin $392,800 $778,200 $1,171,000 Fixed costs were allocated to the two divisions based on each division's share of total revenue. For example the fixed cost allocated to Division A was ($1,302,800 / $3,257,000) x $1,075,000. The company president has just returned from a course where she heard about the notion of traceable fixed costs and common fixed costs. Upon investigation it was determined that only $161,250 of fixed costs were truly common costs. A further $860,000 of fixed costs were traceable $172,000 to Division A and $688,000 to Division B. Finally, $53,750 of fixed costs were support costs that should be attributed to Division A and Davison B based on each division's share of total revenue. Recast the above exhibit to reflect the additional information provided about fixed costs. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Do not use the negative sign. Division A Division B Total Revenue $ 1302800 1954200 3257000 Variable Costs 480000 531000 $1011000 Irontrihiti D not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Do not use the negative sign. Division A Division B Total Revenue $1302800 $1954200 $3257000 Variable Costs 480000 531000 $1011000 Contribution Margin $822800 $ 1423200 $2246000 Traceable Fixed Costs $ 172000 V$ 688000 v $ 860000 Support Costs 161250 x$161250 Segment Margin %24 Common Fixed Costs $1075000 Income Check >

Step by Step Solution

3.52 Rating (172 Votes )

There are 3 Steps involved in it

Step: 1

DivisionA DivisionB Total Revenue 1302800 1954200 3257000 LessVariable costs 48000... 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_2

Step: 3

blur-text-image_3

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

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

16th edition

1259307417, 978-1260153132, 1260153134, 978-1259307416

More Books

Students also viewed these Accounting questions