EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Chapter 25, Problem 15E
a
To determine
Introduction:
The responsibility report prepared by the management determines the contribution margin and controllable margin. Here, the contribution margin is computed by subtracting variable costs from revenue, and the controllable margin is computed by subtracting controllable fixed costs from the contribution margin.
: The missing figures.
b
To determine
Introduction:
The management prepares a responsibility report to evaluate the efficiency in generating revenue and controlling the cost. It helps in comparing the actual and estimated controllable costs.
To prepare: The responsibility report.
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Arlington Clothing, Inc., shows the following information for its two divisions for year 1.
Sales revenue
Cost of sales
Allocated corporate overhead
Other general and administration
Required:
a. Compute divisional operating income for the two divisions. Ignore taxes.
b-1. What are the gross margin and operating margin percentages for both divisions?
b-2. How well have these divisions performed?
Req A
Complete this question by entering your answers in the tabs below.
Operating income
Lake Region
$4,040,000
2,631,300
242,400
541,900
Req B1
stion 10- Hom...
Req B2
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777,000
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Reg A
Req B1 >
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Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and Western. Personnel
costs are allocated on the basis of employees and Legal costs are allocated on the basis of hours. A summary of Baldwin operations
follows:
Employees
Hours
Department direct costs
Costs
Personnel
Legal
Complete this question by entering your answers in the tabs below.
Total
Personnel
$
Personnel
$
10,800
$ 320,000
Required:
a. Allocate the cost of the service departments to the operating divisions using the direct method.
b. Allocate the cost of the service departments to the operating divisions using the step method. Start with Legal.
c. Allocate the cost of the service departments to the operating divisions using the reciprocal method.
320,000 $
320,000 $
Required A
Required B Required C
Allocate the cost of the service departments to the operating divisions using the reciprocal method.
Note: Do not round intermediate calculations. Round your final answers…
Expo manufacturing has two production departments and two support departments. The
number of employees for each department is as follows:
$35,378
O $28,940
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Accounting
Machining Producing
Assembly Producing
Human Resources shows a budget of $21,000 and accounting, $98,000, for the coming year.
Support department costs are allocated on the basis of the number of employees. How much
in total support costs would be allocated to assembly, using the step method? The Accounting
department is allocated first.
$119,000
$34,867
5
10
520
220
Chapter 25 Solutions
EBK ACCOUNTING PRINCIPLES
Ch. 25 - Prob. 1QCh. 25 - Prob. 2QCh. 25 - Prob. 3QCh. 25 - 4. Ken Bay questions the usefulness of a master...Ch. 25 - Prob. 5QCh. 25 - Prob. 6QCh. 25 - Prob. 7QCh. 25 - Prob. 8QCh. 25 - Prob. 9QCh. 25 - Prob. 10Q
Ch. 25 - Prob. 11QCh. 25 - Prob. 12QCh. 25 - Prob. 13QCh. 25 - Prob. 14QCh. 25 - Prob. 15QCh. 25 - Prob. 16QCh. 25 - Prob. 17QCh. 25 - Prob. 18QCh. 25 - Prob. 19QCh. 25 - Prob. 20QCh. 25 - Prob. 21QCh. 25 - Prob. 22QCh. 25 - Prob. 23QCh. 25 - Prob. 24QCh. 25 - Prob. 25QCh. 25 - Prob. 26QCh. 25 - Prob. 1BECh. 25 - Prob. 2BECh. 25 - Prob. 3BECh. 25 - Prob. 4BECh. 25 - Prob. 5BECh. 25 - Prob. 6BECh. 25 - (LO 3) Torres Company accumulates the following...Ch. 25 - Prob. 8BECh. 25 - Prob. 9BECh. 25 - Prob. 10BECh. 25 - Prob. 11BECh. 25 - Prob. 12BECh. 25 - Prob. 1DIECh. 25 - Prob. 2DIECh. 25 - Prob. 3DIECh. 25 - Prob. 4DIECh. 25 - Prob. 1ECh. 25 - E24-2 Crede Company budgeted selling expenses of...Ch. 25 - Prob. 3ECh. 25 - Prob. 4ECh. 25 - Prob. 5ECh. 25 - Prob. 6ECh. 25 - Prob. 7ECh. 25 - Prob. 8ECh. 25 - Prob. 9ECh. 25 - Prob. 10ECh. 25 - Prob. 11ECh. 25 - Prob. 12ECh. 25 - Prob. 13ECh. 25 - Prob. 14ECh. 25 - Prob. 15ECh. 25 - Prob. 16ECh. 25 - Prob. 17ECh. 25 - Prob. 18ECh. 25 - Prob. 19ECh. 25 - Prob. 20ECh. 25 - Prob. 21ECh. 25 - Prob. 1PSACh. 25 - (LO 2) Zelmer Company manufactures tablecloths....Ch. 25 - Prob. 3PSACh. 25 - Prob. 4PSACh. 25 - Prob. 5PSACh. 25 - Prob. 6PSACh. 25 - Prob. 7PSACh. 25 - Service Green Pastures is a 400-acre farm on the...Ch. 25 - Prob. 2EYCTCh. 25 - Prob. 3EYCTCh. 25 - Prob. 4EYCTCh. 25 - Prob. 5EYCTCh. 25 - Prob. 7EYCT
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