Using the data below for the Ace Guitar Company: A RegionB Region Sales$638,000$522,000 Cost of goods sold242,400198,400 Selling expenses153,100125,300 Service department expenses Purchasing $194,900Payroll accounting 129,900Allocate service department expenses proportional to the sales of each region. Determine the divisional income from operations for the A and B regions. For interim calculations, round percentages to one decimal place.a) A Regionb) B Region

Divisional income statement of the business shows all income pertaining to division and all expenses…

Answered: Using the data below for the Ace Guitar…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Using the data below for the Ace Guitar Company:

	A Region	B Region
Sales	$638,000	$522,000
Cost of goods sold	242,400	198,400
Selling expenses	153,100	125,300
Service department expenses
Purchasing			$194,900
Payroll accounting			129,900

Allocate service department expenses proportional to the sales of each region. Determine the divisional income from operations for the A and B regions. For interim calculations, round percentages to one decimal place.

a) A Region

b) B Region

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