Question

Music Teachers, Inc., is an educational association for music teachers that has 20,400 members. The association operates from a central headquarters but has local membership chapters throughout the United States. Monthly meetings are held by the local chapters to discuss recent developments on topics of interest to music teachers. The association's magazine, Teachers' Forum, is issued monthly with features about recent developments in the field. The association publishes books and reports and also sponsors professional courses that qualify for continuing professional education credit. The association's statement of revenues and expenses for the current year is presented below. $3,401,100 Music Teachers, Inc. Statement of Revenues and Expenses For the Year Ended November 38 Revenues Expenses: Salaries Personnel costs Occupancy costs Reimbursement of member costs to local chapters Other membership services Printing and paper Postage and shipping Instructors' fees General and administrative Total expenses Excess of revenues over expenses 982.ee 245,500 226.ece 510,000 540,000 323.ee 171.000 70.00 33.ee 3,180,500 $ 300,600 The board of directors of Music Teachers, Inc., has requested that a segmented income statement be prepared showing the contribution of each segment to the association. The association has four segments: Membership Division, Magazine Subscriptions Division, Books and Reports Division, and Continuing Education Division. Mike Doyle has been assigned responsibility for preparing the segmented income statement, and he has gathered the following data: . The 20,400 members of the association pay dues of $100 per year, of which $20 covers a one-year subscription to the

Answer 1

Above Question based on Segment Reporting and allocation of cost on multiple basis . Please see step by step workings for the same :

Source mean - As per Q - as per question + few source as per Below detail calculation

Sales	Membership Division$	Magazine Subscription-$	Books & reports -$	Continuing Education Div-$	Total($)	Source
Membership Dues	16,32,000	4,08,000				( as below)
Non Member Magazine Subscription		1,25,800
Advertising Revenue		1,13,000				( as per Q)
Reports			7,17,500
Tution fees				4,15,000
Total Revenue	16,32,000	6,46,800	7,17,500	4,15,000	34,11,300
Cost
Salaries	2,26,000	1,51,000	3,20,000	1,93,000	8,90,000	( as per Q)
Personnel cost	56,500	37,750	80,000	48,250	2,22,500	( as below)
Occupancy cost	51,000	17,000	17,000	34,000	1,19,000	( as below)
Reimbursement of member cost	5,10,000				5,10,000	( as per Q)
Other membership fees	5,40,000				5,40,000	( as per Q)
Printing pAper		30,600	1,14,800	1,77,600	3,23,000	( as below)/ Continue Edc - Balance number
Postage and Shipping fees		13,600	57,400	-	71,000	( as below)
Instructor Fees				70,000	70,000	( as per Q)
Total Identified cost	13,83,500	2,49,950	5,89,200	5,22,850	27,45,500
Margin	2,48,500	3,96,850	1,28,300	-1,07,850	6,65,800
General and Admin
Common Expenes Not Traceable
Salaries					92,000	( as per Q)
Occupancy cost					51,000	( as below)
Personnel cost					23,000	( as below)
General and Admin					33,000	( as per Q)
Postage and Shipping fees					1,00,000	( as below)
Total Common Cost					2,99,000
Net margin					3,66,800

Workings
Total member	20400
Association pay dues($)	100
Magazine Div ($)	20
Sales -Magazine Div	4,08,000
Bal Membership div
Membership Div ($)	80
Sales -Membership Div$	16,32,000

As per Question -Point (b)
One Year Subscription (a)	3,400
Subscription rate ($ (b)	37
Revenue (a*b)$	1,25,800
Cost per magazine Printing (c)	$9
Cost per magazine Postage(b)	$4
One Year Subscription (a)	3,400
Cost Postage(b*a)$	13,600
Cost Printing (c*a)$	30,600
As per Question -Point (d)
Technical Report (a)	28,700
Selling rate ($ (b)	25
Revenue (a*b)$	7,17,500
Cost per magazine Printing (c)	$4
Cost per magazine Postage(b)	$2
Technical Report (a)	28,700
Cost Postage(b*a)$	57,400
Cost Printing (c*a)$	1,14,800
Total Postage Cost ( $) as per Q	1,71,000
Postage cost as calculated above
Cost Postage- Magazine $	13,600
Cost Postage- Books & Report $	57,400
Balance as common $	1,00,000
Tution fees
One day Course
Student (a)	2,500
rate (b)-$	75
Revenue (a*b)-$	1,87,500
2 day Course
Student (a)	1,820
rate (b)$	125
Revenue (a*b)-$	2,27,500

Occupancy Cost		2,26,000	(As per Q)
Rental cost		56,000	(As per Q)
Balance Cost allocate		1,70,000
Area Occupied			Allocated cost	Basis formual
Membership		3,000	51,000	3000/10000*170000
magazine Sub		1,000	17,000	1000/10000*170000
Books & Reports		1,000	17,000	1000/10000*170000
Continue reading		2,000	34,000	2000/10000*170000
Corporate Staff		3,000	51,000	3000/10000*170000
Total $		10,000	1,70,000	3000/10000*170000

Personnel Cost($)		9,82,000	(As per Q)
Personnel Cost($)		2,45,500	(As per Q)
]			Allocated cost	Basis formual
Membership		2,26,000	56,500	226000/982000*245500
magazine Sub		1,51,000	37,750	151000/982000*245500
Books & Reports		3,20,000	80,000	320000/982000*245500
Continue reading		1,93,000	48,250	193000/982000*245500
Corporate Staff		92,000	23,000	92000/982000*245500
Total $		9,82,000	2,45,500