WXY Corp operates in three segments: Electronics, Furniture, and Clothing. The following information is provided for the year ended 31 December 2023:

Item	Electronics ($)	Furniture ($)	Clothing ($)	Total ($)
Sales revenue	400,000	300,000	200,000	900,000
Variable costs	200,000	150,000	120,000	470,000
Fixed costs	100,000	80,000	60,000	240,000

Required: a. Prepare a segmented income statement for the year ended 31 December 2023. b. Calculate the contribution margin for each segment. c. Determine the segment margin for each segment. d. Evaluate the performance of each segment and provide recommendations for improving profitability.

Cost Allocation and Overhead Application ABM Ltd uses a predetermined overhead rate based on direct labor hours. The following data is provided for the year ended 31 December 2024:

Estimated manufacturing overhead: $150,000

Estimated direct labor hours: 50,000 hours

Actual manufacturing overhead: $160,000

Actual direct labor hours: 52,000 hours

Required: a. Calculate the predetermined overhead rate. b. Compute the applied overhead for the year. c. Determine the over-applied or under-applied overhead and prepare the necessary journal entry to close the overhead account. d. Explain the potential causes and implications of over-applied or under-applied overhead.