Ultimo Company operates three production departments as profit centers. The following information is available for its most recent year. Which department has the greatest departmental contribution to overhead (in dollars) and what is the amount contributed? Sales Cost of goods sold Direct expenses Indirect expenses Multiple Choice Department 1 Department 2 $ 1,150,000 $ 550,000 715,000 165,000 115,000 55,000 95,000 115,000 Department 2; $115,000. Department 2: $165,000. Department 1: $1,150,000. Department 3; $535,000. Department 3; $370,000. www Department 3 $ 850,000 315,000 165,000 35,000

Ultimo Company operates three production departments as profit centers. The following information is available for its most recent year. Which department has the greatest departmental contribution to overhead (in dollars) and what is the amount contributed? Sales Cost of goods sold Direct expenses Indirect expenses Multiple Choice Department 1 Department 2 $ 1,150,000 $ 550,000 715,000 165,000 115,000 55,000 95,000 115,000 Department 2; $115,000. Department 2: $165,000. Department 1: $1,150,000. Department 3; $535,000. Department 3; $370,000. www Department 3 $ 850,000 315,000 165,000 35,000

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

Use the following information for Exercises 2-47 through 2-49. Jasper Company provided the following information for last year: Last year, beginning and ending inventories of work in process and finished goods equaled zero. Exercise 2-49 Income Statement Refer to the information for Jasper Company on the previous page. Required: 1. Prepare an income statement for Jasper for last year. Calculate the percentage of sales for each line item on the income statement. (Note: Round percentages to the nearest tenth of a percent.) 2. CONCEPTUAL CONNECTION Briefly explain how a manager could use the income statement created for Requirement 1 to better control costs.
Quality Cost Report Loring Company had total sales of 2,400,000 for fiscal 20X1. The costs of quality-related activities are given below. Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each categorys contribution to total quality costs. Comment on the significance of the distribution.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
COMPUTING OPERATING INCOME The sales, cost of goods sold, and total operating expenses of departments A and B of Ash Company are as follows: Compute the departmental operating income for each department.
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
Use the following information to compute each department’s contribution to overhead. Which department contributes the largest amount toward total overhead? Department A Department B Department C Sales $ 61,000 $ 199,000 $ 79,000 Cost of goods sold 38,430 103,480 41,870 Gross profit 22,570 95,520 37,130 Total direct expenses 4,980 42,940 8,266
Ultimo Company operates three production departments as profit centers. The following Information is avallable tor its most recent year Depntment 2s comciodn to o n dollars is: Sales Department 1 $ 3,500,000 Department 2 $ 1,400,000 Cost of Department 3 goods sold 2,450,000 $ 2,450,0o0 Direct expenses 525,000 1,050,000 Indirect expenses 350,000 140,000 525,000 280,000 350,000 70,000 Multiple Choice $735,000. $525,000. $35,000. $910,000. 10 of 25 no. ( Prev
eBook Show Me How Question Content Area Cost Department Allocations 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 $48,108, and the Purchasing Department had expenses of $25,080 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Line Item Description Residential Commercial Government Contract Sales $524,000 $695,000 $1,595,000 Number of employees: Weekly payroll (52 weeks per year) 115 80 85 Monthly payroll 38 49 36 Number of purchase requisitions per year 2,400 1,700 1,600 Required: a. Determine the total amount of payroll checks and purchase requisitions processed per year by the…
Suresh Company reports the following segment (department) income results for the year. Department M Department N Department O Department P Department T Total Sales $ 77,000 $ 39,000 $ 70,000 $ 56,000 $ 38,000 $ 280,000 Expenses Avoidable 14,800 42,400 21,600 19,000 46,800 144,600 Unavoidable 55,800 18,600 5,200 43,200 16,800 139,600 Total expenses 70,600 61,000 26,800 62,200 63,600 284,200 Income (loss) $ 6,400 $ (22,000) $ 43,200 $ (6,200) $ (25,600) $ (4,200) b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated.
Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment Rent Utilities Share of office department expenses Total expenses Income Phone Earbuds Combined $ 200,000 98,000 $ 95,000 $ 295,000 58,900 102,000 36,100 156,900 138,100 20,000 8,700 28,700 1,150 450 1,600 2,100 300 2,400 7,060 3,840 10,900 2,700 1,800 4,500 10,500 4,500 43,510 19,590 $ 58,490 $ 16,510 15,000 63,100 $ 75,000 Required: Prepare a departmental contribution to overhead report. Garcia Company Departmental Contribution to Overhead For Year Ended December 31 Gross profit Direct expenses Phone Earbuds Combined 0 0 0 Total direct expenses 0 0 0 Departmental…
The sales, gross profit, and direct and indirect operating expenses of Departments A and B of Cardoba Inc. are as follows: Dept. A Dept. B Total Sales $420,000 $290,000 $710,000 Gross profit 243,000 197,000 440,000 Direct operating expenses 205,000 118,000 323,000 Indirect operating expenses 160,000 Help compute the departmental direct operating margin and direct operating margin percentage for each department.
Brooks Company has three divisions - Northwest, South, and East. The following segmented financial information is for the most recent fiscal year ended December 31. Sales Northwest Division $22,000,000 10,000,000 4,125,000 South Division East Division $18,000,000 Cost of goods sold Allocated overhead Selling and administrative expenses 5,000,000 $8,000,000 2,000,000 1,500,000 3,200,000 7,000,000 3,375,000 5,000,000 In addition, the average operating assets totaled $15,000,000 for the Northwest Division, $6,500,000 for the South division, and $14,000,000 for the East division. Also, the cost of capital is 16 percent. The corporate tax rate is 30%. Required: You have been hired, an expert in financial analysis, to evaluate the operating performance of the three divisions. What division is performing the best? What division is performing the worst?