FINANCIAL ACCOUNTING
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QS 24-11 Performance measures LO A1, A2
Investment center Department A Department B B
Sales $ ? $12,200,000
Net Income $584,600 $ ?
Average invested assets $1,580,000 $ ?
Profit margin 10% ? %
Investment turnover ? 1.3
Return on investment ? % 13%
Use the information in the table above to compute each department's contribution to
Investment center Choose Numerator/ Choose Denominator = Profit Margin Percent (A & B).
Choose Numerator/Choose Denominator = Investment Turnover (A & B).
Choose Numerator/Choose Denominator = Return on Investment (A & B).
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- EXERCISE 12-4 The Income Statement columns of the August 31 (year-end) work sheet for Ralley Company are shown here, From the information given, prepare income statement for the company. To save time and space, the expenses have been grouped together into two categories. LO Pra Show m HOV 4 5 ACCOUNT NAME INCOME STATEMENT DEBIT 7 CREDIT 23 Income Summary Sales 32,000.00 31,000.00 324,000.00 24 25 Sales Returns and Allowances 13,310.00 7,700.00 126,360.00 26 Sales Discounts Purchases Purchases Returns and Allowances Purchases Discounts 27 1,200.00 1,300.00 28 29 30 7,500.00 61,560.00 Freight In 31 50,884.00 299,314.00 58.188.00 357,500.00 Selling Expenses 357,500.00 32 General Expenses 33 357,500.00 34 Net Income 35 36 Sheet3 Sheet2 Sheettarrow_forwardQuestion 3 Phoenix Partners provides management consulting services to government and corporate clients. Phoenix has two support departments-administrative services (AS) and information systems (IS) and two operating departments- government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2017, Phoenix's cost records indicate the following: SUPPORT OPERATING AS IS GVT CORP TOTAL Budgeted overhead costs $600,000 $2,400,000 $8,756,000 $12,452,000 $24,208,000 before any inter-department cost allocations Support work supplied by 25% 40% 35% 100% AS (budgeted head count) Support work supplied by 10% IS (budgeted time) computer 30% 60% 100% Required: 1. Allocate the two support departments' costs to the two operating departments using the following methods: a. Direct method b. Step-down method (allocate AS first) c. Step-down method (allocate IS first) 2. Compare and explain differences in the support-department costs allocated to each operating department.arrow_forwardExercise 9-7A Return on investment An investment center of Aguilar Corporation shows an operating income of $7,500 on total operating assets of $60,000. Required Compute the return on investment.arrow_forward
- Exercise 18-13 (Algo) Computing sales to achieve target income LO C2 Sunn Company manufactures a single product that sells for $145 per unit and whose variable costs are $87 per unit. The company's annual fixed costs are $916,400. Management targets an annual income of $1,450,000. (1) Compute the unit sales to earn the target income. Numerator: 1 1 Denominator: (2) Compute the dollar sales to earn the target income. Numerator: 1 1 Denominator: = || = = || Units to Achieve Target Units to achieve target 0 Dollars to Achieve Target Dollars to achieve target 0arrow_forwardQuestion 19arrow_forwardA1 fx Chapter 10: Applying Excel A В C E F 1 Chapter 10: Applying Excel 2 3 Data 4 Exhibit 10-1: Standard Cost Card Iпрuts Standard Quantity 2.9 pounds Standard Price 6 Direct materials 7 Direct labor 8 Variable manufacturing overhead $4.00 per pound $22.00 per hour $6.00 per hour 0.60 hours 0.60 hours 9. 10 Actual results: Actual output 11 2,000 units $7,140 Actual Quantity 6,500 pounds 12 Actual variable manufacturing overhead cost Actual price $3.80 per pound $21.60 per hour 13 14 Actual direct materials cost 15 Actual direct labor cost 1,050 hours 16 17 Enter a formula into each of the cells marked with a ? below 18 Main Example: Chapter 10 19 20 Exhibit 10-4: Standard Cost Variance Analysis- Direct Materials 21 Standard Quantity Allowed for the Actual Output, at Standard Price 22 Actual Quantity of Input, at Standard Price 23 Actual Quantity of Input, at Actual Price 5,800 pounds x 6,500 pounds x 6,500 pounds x $4.00 per pound = $4.00 per pound = $3.80 per pound = $23,200 $26,000…arrow_forward
- answer quicklyarrow_forwardQUESTION 25 Top management is trying to determine which would be the best choice of the following: Data of investment choices: 1 Sales $10,000,000 Operating income 200,000 Average operating assets 2,000,000 Required: Compute the Return on Investment 9% 12% 8% 10%arrow_forwardProblem 11-60 (Algo) Cost Allocation: Step and Reciprocal Methods (LO 11-1) Dunedin Bank has two operating departments (Retail and Commercial) and three service departments: Operations, Information Technology (IT), and Transactions. For the last period, the following costs and service department usage ratios were recorded: Supplying Department Transactions IT Operations Direct cost Using Department Transactions IT Operations Retail Commercial Ө Ө 70% 30% 10% Ө 20% 30% 40% 50% Ө Ө 10% 40% $ 390,000 $ 810,000 $ 1,650,000 $ 3,850,000 $ 2,400,000 Required: a. Allocate the service department costs to the two operating departments using the reciprocal method. From: Costs Operations Allocated to: Transactions Retail Commercial IT $ 810,000 $ 162,000 $ 81,000 $ 243,000 $ 324,000 Operations Transactions Total $ 243,000 $ 324,000arrow_forward
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