Diego Company manufactures one product that is sold for $75 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 57,000 units and sold 52,000 units.
Variable costs per unit: | ||
Manufacturing: | ||
Direct materials | $ | 25 |
Direct labor | $ | 18 |
Variable manufacturing overhead | $ | 3 |
Variable selling and administrative | $ | 5 |
Fixed costs per year: | ||
Fixed manufacturing overhead | $ | 627,000 |
Fixed selling and administrative expense | $ | 645,000 |
The company sold 36,000 units in the East region and 16,000 units in the West region. It determined that $310,000 of its fixed selling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and the remaining $75,000 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.
13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions.
Direct materials | 25 |
Direct labor | 18 |
Variable manufacturing overhead | 3 |
Variable selling and administrative | 5 |
Variable cost per unit | 51 |
Income statement | |||
Total company | East | West | |
Sales [ Units sold * 75 ] | $ 3,900,000 | $ 2,700,000 | $ 1,200,000 |
Variable expenses [ Units sold * 51 ] | $ 2,652,000 | $ 1,836,000 | $ 816,000 |
Contribution margin | $ 1,248,000 | $ 864,000 | $ 384,000 |
Traceable fixed expenses | $ 570,000 | $ 260,000 | $ 310,000 |
Region segment margin | $ 678,000 | $ 604,000 | $ 74,000 |
Common fixed expenses not traceable to regions [ 627000 + 75000 ] | $ 702,000 | ||
Net operating income | $ (24,000) |
Diego Company manufactures one product that is sold for $75 per unit in two geographic regions—the...
Diego Company manufactures one product that is sold for $75 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 57,000 units and sold 52,000 units. Variable costs per unit: Manufacturing: Direct materials $ 25 Direct labor $ 18 Variable manufacturing overhead $ 3 Variable selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 627,000 Fixed selling and administrative expense $...
Diego Company manufactures one product that is sold for $75 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 57,000 units and sold 52,000 units. Variable costs per unit: Manufacturing: Direct materials $ 25 Direct labor $ 18 Variable manufacturing overhead $ 3 Variable selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 627,000 Fixed selling and administrative expense $...
Diego Company manufactures one product that is sold for $75 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 57,000 units and sold 52,000 units. The company sold 36,000 units in the East region and 16,000 units in the West region. It determined that $310,000 of its fixed selling and administrative expense is traceable to the West region, $260,000 is traceable to the East...
Diego Company manufactures one product that is sold for $73 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 56,000 units and sold 51,000 units. Variable costs per unit Manufacturing Direct sateriala Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per yeart Fixed manufacturing overhead Fixed welling and administrative expense $784.000 The company sold 38,000 units in the East region and...
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. Variable costs per uniti Manufacturings Direct naterials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expense 21 10 2 4 $1,060,000 557,000 The company sold 36,000 units...
Diego Company manufactures one product that is sold for $73 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 56,000 units and sold 51,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 784,000 $ 672,000 The company sold 38,000 units in the...
Diego Company manufactures one product that is sold for $78 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 49,000 units and sold 44,000 units. Variable costs per unit: Manufacturing: Direct materials $ 28 Direct labor $ 14 Variable manufacturing overhead $ 4 Variable selling and administrative $ 6 Fixed costs per year: Fixed manufacturing overhead $ 686,000 Fixed selling and administrative expense $...
Diego Company manufactures one product that is sold for $81 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 52,000 units and sold 47,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense 20 20 4 tA AAtA $936,000 $552,000 The company sold 35,000...
Diego Company manufactures one product that is sold for $81 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 52,000 units and sold 47,000 units. Variable costs per unit: Manufacturing: Direct materials $ 20 Direct labor $ 20 Variable manufacturing overhead $ 4 Variable selling and administrative $ 6 Fixed costs per year: Fixed manufacturing overhead $ 936,000 Fixed selling and administrative expense $...
Diego Company manufactures one product that is sold for $80 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 40,000 units and sold 35,000 units. Variable costs per unit: Manufacturing: Direct materials $ 24 Direct labor $ 14 Variable manufacturing overhead $ 2 Variable selling and administrative $ 4 Fixed costs per year: Fixed manufacturing overhead $ 800,000 Fixed selling and administrative expense $...