None SalesTraceable fixed expenses:AdvertisingSelling and administrativeDepreciationVariable expenses as a percentage of salesGarmentsR520,000R 92,000Leather Division Product LinesShoesR900,000R124,000HandbagsR540,000R127,000R 42,000R 31,00060%R 47,000R 68,00040%R 75,000R 27,00059%Analysis shows that R65,000 of the Leather Division's selling and administrative expenses are common to the product lines.Required:1. Prepare a contribution format segmented income statement for the Leather Division, with segments defined as product lines.Sales> Answer is not complete.Product LineLeatherGarmentsShoesHandbagsDivisionR1,960,000 R520,000 R900,000 R540,000990,600312,000360,000318,600969,400208,000540,000221,400Variable expensesContribution marginTraceable fixed expenses:AdvertisingR☑Selling & administrativeRX343,000164,000 RXR92,000 R 124,000 (R127,000DepreciationRX126,000 RX42,00031,000R☑47,000 R75,000RX68,000 R27,000Total traceable fixed expenses633,000165,000239,000229,000336,400 R43,000R301,000 R(7,600)Common fixed expenses:65,000

An income statement, also known as a profit and loss statement (P&L), is one of the primary…

Sales Traceable fixed expenses: Advertising Selling and administrative Depreciation Variable expenses as a percentage of sales Garments R520,000 R 92,000 Leather Division Product Lines Shoes R900,000 R124,000 Handbags R540,000 R127,000 R 42,000 R 31,000 60% R 47,000 R 68,000 40% R 75,000 R 27,000 59% Analysis shows that R65,000 of the Leather Division's selling and administrative expenses are common to the product lines. Required: 1. Prepare a contribution format segmented income statement for the Leather Division, with segments defined as product lines. Answer is not complete. Product Line Leather Garments Shoes Handbags Division Sales R 1,960,000 R Variable expenses 990,600 Contribution margin 969,400 520,000 312,000 208,000 R 900,000 R 540,000 360,000 318,600 540,000 221,400 Traceable fixed expenses: Advertising R 343,000 R Selling & administrative R 164,000 R Depreciation RX 126,000 R Total traceable fixed expenses 633,000 336,400 R 92,000 R 42,000 R 31,000 R 165,000 43,000 R 124,000 R 127,000 47,000 R 75,000 68,000 R 27,000 239,000 301,000 R 229,000 (7,600) Common fixed expenses: 65,000

Sales Traceable fixed expenses: Advertising Selling and administrative Depreciation Variable expenses as a percentage of sales Garments R520,000 R 92,000 Leather Division Product Lines Shoes R900,000 R124,000 Handbags R540,000 R127,000 R 42,000 R 31,000 60% R 47,000 R 68,000 40% R 75,000 R 27,000 59% Analysis shows that R65,000 of the Leather Division's selling and administrative expenses are common to the product lines. Required: 1. Prepare a contribution format segmented income statement for the Leather Division, with segments defined as product lines. Answer is not complete. Product Line Leather Garments Shoes Handbags Division Sales R 1,960,000 R Variable expenses 990,600 Contribution margin 969,400 520,000 312,000 208,000 R 900,000 R 540,000 360,000 318,600 540,000 221,400 Traceable fixed expenses: Advertising R 343,000 R Selling & administrative R 164,000 R Depreciation RX 126,000 R Total traceable fixed expenses 633,000 336,400 R 92,000 R 42,000 R 31,000 R 165,000 43,000 R 124,000 R 127,000 47,000 R 75,000 68,000 R 27,000 239,000 301,000 R 229,000 (7,600) Common fixed expenses: 65,000

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter27: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 16E: Cost of quality report A. Using the information in Exercise 15, identify the cost of quality...

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