13 Required information The Foundational 15 [LO6-1, LO6-2, LO6-3, L06-4, LO6-5]

Question

13 Required information The Foundational 15 [LO6-1, LO6-2, LO6-3, L06-4, LO6-5] [The following information applies to the questions displayed below.] Part 13 of 15 Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 53,000 units and sold 48,000 units points Variable costs per unit: eBook Manufacturing: 21 10 Direct materials Direct labor Variable manufacturing Print overhead Variable selling and administrative Reference Fixed costs per year: Fixed manufacturing overhead $1,060,000 Fixed selling and administrative expense $ 557,000 The company sold 36,000 units in the East region and 12,000 units in the West region. It determined that $270,000 of its fixed selling and administrative expense is traceable to the West region, $220,000 is traceable to the East region, and the remaining $67,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. Foundational 6-13 13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions. Income Statement Total Compan East West 0 $

Explanation / Answer

Net operating loss

Total Company East West Sales 3360000 2520000 840000 Variable Expenses 1776000 1332000 444000 Contribution Margin 1584000 1188000 396000 Traceable Fixed expenses 490000 270000 220000 Region segment margin 1094000 918000 176000 Common fixed expenses not traceable to regions 1127000

Net operating loss

-33000

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.