Countywide Cable Services, Incorporated, is organized with three segments: Metro, Suburban, and Outlying. Data for th for the year just ended follow. Service revenue Variable expenses Controllable fixed expenses Fixed expenses controllable by others Metro $ 1,150,000 190,000 410,000 220,000 Suburban $ 950,000 140,000 330,000 190,000 Outlying $ 550,000 90,000 160,000 80,000 In addition to the expenses listed above, the company has $145,000 of common fixed expenses. Income-tax expense fo $345,000. Required: 1. Prepare a segmented income statement for Countywide Cable Services, Incorporated. SEGMENTED INCOME STATEMENTS: COUNTYWIDE CABLE SERVICES, INCORPORATED Segments of Company Countywide

Countywide Cable Services, Incorporated, is organized with three segments: Metro, Suburban, and Outlying. Data for th for the year just ended follow. Service revenue Variable expenses Controllable fixed expenses Fixed expenses controllable by others Metro $ 1,150,000 190,000 410,000 220,000 Suburban $ 950,000 140,000 330,000 190,000 Outlying $ 550,000 90,000 160,000 80,000 In addition to the expenses listed above, the company has $145,000 of common fixed expenses. Income-tax expense fo $345,000. Required: 1. Prepare a segmented income statement for Countywide Cable Services, Incorporated. SEGMENTED INCOME STATEMENTS: COUNTYWIDE CABLE SERVICES, INCORPORATED Segments of Company Countywide

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 5E: Service department charges In divisional income statements prepared for Demopolis Company, the...

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Countywide Cable Services, Inc., is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended follow. Outlying $370,000 54,000 106,000 44,000 Metro Suburban $770,000 104,000 276,000 154,000 Service revenue $970,000 Variable expenses Controllable fixed expenses Fixed expenses controllable by others 154,000 356,000 184,000 In addition to the expenses listed above, the company has $55,000 of common fixed expenses. Income-tax expense for the year is $255,000. Required: 1. Prepare a segmented income statement for Countywide Cable Services, Inc. SEGMENTED INCOME STATEMENTS: COUNTYWIDE CABLE SERVICES, INC. Segments Company Countywide Cable Services Metro Suburban Outlying Segment contribution margin 0 $ 0 $ 2$ < Prev Nax 2 of 7 hulu
Countywide Cable Services, Inc., is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended follow. Service revenue Variable expenses Controllable fixed expenses Fixed expenses controllable by others Metro $960, 000 152,000 353, 000 182,000 Suburban $760,000 102,000 273,000 152,000 Outlying $360,000 52,000 103,000 42,000 In addition to the expenses listed above, the company has $50,000 of common fixed expenses. Income-tax expense for the year is $250.000. Required: 1. Prepare a segmented income statement for Countywide Cable Services, Inc. SEGMENTED INCOME STATEMENTS: COUNTYWIDE CABLE SERVICES, INC. Segments of Company Countywide Cable Services Outlying Metro Suburban Segment contribution margin %24 0 $ Profit margin controllable by segment manager 2$ 0 $ 0 $ 0 $ Profit margin traceable to segment %24 0 $ 0 $ MacBook Pro %23 % & 3 4 * 7 8 E R T Y { D F K V MOSISO
Countywide Cable Services, Inc., is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended follow. Metro Suburban Service revenue Variable expenses Controllable fixed expenses Fixed expenses controllable by others $970,000 154, 000 356,000 184,000 $770,000 104,000 276,000 154,000 Outlying $370,000 54,000 106,000 44,000 In addition to the expenses listed above, the company has $55,000 of common fixed expenses. Income-tax expense for the year is $255,000. ces Required: 1. Prepare a segmented income statement for Countywide Cable Services, Inc. SEGMENTED INCOME STATEMENTS: COUNTYWIDE CABLE SERVICES, INC. Segments of Company Countywide Cable Services Outlying Metro Suburban Segment contribution margin < Prev 2 of 7 Next
Countywide Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended follow. Metro Suburban OutlyingService revenue ........................................$1,000,000 $800,000 $400,000Variable expenses ......................................200,000 150,000 100,000Controllable fixed expenses ...................400,000 320,000 150,000Fixed expenses controllable by others 230,000 200,000 90,000 In addition to the expenses listed above, the company has $95,000 of common fixed expenses. Income-tax expense for the year is $145,000. Required:1. Prepare a segmented income statement for Countywide Cable Services, Inc. Use the contribution format.2. Build a spreadsheet: Construct an Excel spreadsheet to solve the preceding requirement. Show how the solution will change if the…
Service department charges In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of 64,560, and the Purchasing Department had expenses of 40,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: A. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. B. Using the cost driver information in (A), determine the annual amount of payroll and purchasing costs allocated to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. C. Why does the Residential Division have a larger support department allocation than the other two divisions, even though its sales are lower?
Divisional Income Statements with Service Department Charges Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: Tech Support Department $912,600 Purchasing Department 265,500 Other corporate administrative expenses 507,000 Total corporate expense $1,685,100 The other corporate administrative expenses include officers’ salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows: Tech Support Purchasing Consumer Division 480 computers 6,200 purchase orders Commercial Division 300 11,500 Total 780 computers…
Using A. Corporation information and data . a) Determine the divisional income from operations for three regions by allocating the service department expenses proportional to sales of the regions. b) determine the increase or decrease in net income if C region did not operate. A region B region C region Sales $ 2,000,000 $2,800,000 $3,200,000 Cost of goods sold $700,000 $1,100,000 $1,900,000 Selling expenses $500,000 $850,000 $1,000,000 Service department expenses Purchasing 600,000 Payroll accounting. 400,000
Divisional Income Statements with Service Department Charges Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: Tech Support Department $1,072,800 Purchasing Department 244,500 Other corporate administrative expenses 566,000 Total corporate expense $1,883,300 The other corporate administrative expenses include officers’ salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows: Tech Support Purchasing Consumer Division 440 computers 5,700 purchase orders Commercial Division 280 10,600 Total 720 computers…
Divisional Income Statements with Service Department Charges Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: Tech Support Department $1,201,200 Purchasing Department 231,000 Other corporate administrative expenses 616,000 Total corporate expense $2,048,200 The other corporate administrative expenses include officers’ salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows: Tech Support Purchasing Consumer Division 480 computers 5,400 purchase orders Commercial Division 300 10,000 Total 780 computers…
Divisional Income Statements with Service Department Charges Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: Tech Support Department $786,600 Purchasing Department 338,000 Other corporate administrative expenses 484,000 Total corporate expense $1,608,600 The other corporate administrative expenses include officers’ salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows: Tech Support Purchasing Consumer Division 350 computers 5,900 purchase orders Commercial Division 220 11,000 Total 570 computers…
Divisional Income Statements with Service Department Charges Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: Tech Support Department $516,000 Purchasing Department 89,600 Other corporate administrative expenses 560,000 Total corporate expense $1,165,600 The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows: Tech Support Purchasing Consumer Division 375 computers 1,960 purchase orders Commercial Division 225 3,640 Total 600 computers…
Divisional Income Statements with Support Department Allocations Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments, Tech Services and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: Tech Services Department $1,050,000 Purchasing Department 348,000 Other corporate administrative expenses 601,000 Total expense $1,999,000 The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Services Department allocates costs to the divisions based on the number of computers in the department, and the Purchasing Department allocates costs to the divisions based on the number of purchase orders for each department. The services used by the two divisions are as follows: Tech Services Purchasing Consumer Division 460 computers 6,100 purchase orders Commercial Division 290 11,300 Total 750 computers 17,400 purchase orders The support department…