B-23.04 Following are key terms relating to the concept of a


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Please help .Please attachment below. Thanks a lot . Acct 301 week 8 Homework for students.xls B-23.04 Following are key terms relating to the concept of a contribution income statement reporting format: General corporate costs Contribution margin Controllable contribution margin Non-traceable Segment margin Controllable fixed costs Net income Uncontrollable fixed costs Determine which of the following descriptions is best associated with each of the above terms: (a) These are subtracted from the segment margin to arrive at net income. (b) This amount is useful in evaluating management performance for a unit. (c) This is the result of subtracting all variable costs from revenues. (d) This is a measure of business viability. (e) This result would not relate to any segment, but only the corporate total. (f) These are incurred by a unit, but are not useful in evaluating unit management. (g) These costs may be attributable to a division, but not a specific product. (h) This amount is subtracted from the contribution margin to find the controllable contribution margin. Name: Date: (a) Section: B-23.04 These are subtracted from the segment margin to arrive at net income. General corporate costs (b) This amount is useful in evaluating management performance for a unit. (c) This is the result of subtracting all variable costs from revenues. (d) This is a measure of business viability. (e) This result would not relate to any segment, but only the corporate total. (f) These are incurred by a unit, but are not useful in evaluating unit management. (g) These costs may be attributable to a division, but not a specific product. (h) This amount is subtracted from the contribution margin to find the controllable contribution margin. B-23.05 Victoria Falls Flour Mill Company started many years ago producing a single product. It has grown to produce many diverse consumer products ranging from foods to paper goods. Currently, the corporation is barely making a profit, and the price of its stock has languished. Division managers have traditionally been incentivized with stock options and awards. However, management is evaluating a new bonus plan based on segment profits within each division. Below are 20X4 facts about the Sugar Products Division, which generates 10% of overall corporate revenue. The Sugar Products Division has two key products – raw sugar and candy. Total sales of raw sugar and candy Traceable, controllable, sugar division fixed costs $ 45,750,000 10,250,000 Traceable, uncontrollable, sugar division fixed costs 3,600,000 Non-traceable, controllable, sugar division fixed costs 1,500,000 Non-traceable, uncontrollable, sugar division fixed costs 1,750,000 Variable selling, general, & administrative costs 9,050,000 Variable product costs General corporate expenses for all divisions 21,700,000 8,000,000 Prepare a contribution income statement for the aggregated Sugar Division (one column). If the division manager is to be evaluated on controllable contribution margin, would the Sugar Division manager appear to be entitled to a bonus? Name: Date: B-23.05 Section: 20X4 Divisional Report for Sugar Products Contribution Income Statement Sales Less: $ 45,750,000 B-23.08 Downhill Manufacturing produces snow skis in a two-step production process – cutting and laminating. The manufacturing center is supported by two service centers – a health clinic and a janitorial service. The following table reveals certain facts about each activity: Employees Square footage Cost incurred (a) $ Health clinic Janitorial service Cutting department Laminating department 2 4 10 15 1,200 600 12,000 8,000 180,000 $ 125,000 $ 700,000 $ 800,000 Using the direct method, allocate the service department costs to production. The clinic costs are to be allocated based on employees, and the janitorial costs are to be allocated based on the square footage. Name: Date: B-23.08 Section: (a) Janitorial service Health clinic Cost in

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