Question
Using the data below for the Ace Guitar Company: A Region B Region Sales $549,000 $671,000 Cost of goods sold 208,600 255,000 Selling expenses 131,800
Using the data below for the Ace Guitar Company:
| A Region | B Region | |||||
| Sales | $549,000 | $671,000 | ||||
| Cost of goods sold | 208,600 | 255,000 | ||||
| Selling expenses | 131,800 | 161,000 | ||||
| Support department expenses: | ||||||
| Purchasing | $205,000 | |||||
| Payroll accounting | 136,600 |
Allocate support department expenses proportional to the sales of each region. Determine the divisional operating income for the A and B regions. For interim calculations, round percentages to two decimal places and all other amounts to the nearest whole dollar.
| A Region Operating Income | $fill in the blank 1 |
| B Region Operating Income | $fill in the blank 2 |
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Accounting Principles Managerial Concepts
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
7th Canadian Edition
1119310296, 978-1119310297
