Calculate the segment margin for the product ROMS

Assignment Help Cost Accounting
Reference no: EM132832431

Question - Deliver Company produces and sells only two products that are referred to as ROMS and PLATS. Production is "for order" only, and no finished goods inventories are maintained; work in process inventories are negligible.

The following data have been extracted relating to last month:

 

ROMS

PLATS

Sales

$190,000

$190,000

Manufacturing costs:

 

 

Materials

$19,000

$26,000

Labor

$58,900

$51,900

Overhead

$74,100

$87,000

Selling expenses

$17,100

$9,500

Administrative expenses

$12,000

$18,000

An analysis has been made of the manufacturing overhead. Although the items listed above are traceable to the products, $37,050 of the overhead assigned to ROMS and $76,000 of that assigned to PLATS is fixed. The balance of the overhead is variable. Selling expenses consist entirely of commissions paid as a percentage of sales. Direct labor is completely variable.

Administrative expenses in the data above are fixed and cannot be traced to the products but have been arbitrarily allocated to the products.

Required - Calculate the segment margin for the product ROMS as it would appear in a segmented income statement in good form. The remaining portions of the statement do not have to be completed.

Reference no: EM132832431

Questions Cloud

Discuss three common ways to build capabilities internally : What conditions, externally and internally, would be desired or necessary for a firm to diversify?
Write journal entries to record such transactions : The remaining economic years being 20 years and estimated fair value of the building is $2m. Write journal entries to record such transactions
Discuss what is saas : 1) Discuss what is SaaS and what are some of its advantages for different types of organizations.
Which situations should use projects instead of sub-customer : Which situations should use Projects instead of sub-customers? You want a job to have a different address than other jobs with the same parent
Calculate the segment margin for the product ROMS : Calculate the segment margin for the product ROMS as it would appear in a segmented income statement in good form
How technology support the learning of diverse students : First, conduct a SWOT analysis of your technology integration. This analysis should cover the four (4) categories - Strengths, Weaknesses, Opportunities.
About consumer behavior : For your final Consumer Behavior Blog entry, consider all that you have learned about consumer behavior.
Compute the unit product cost and income statement : Stark, Inc., The company has just opened a new plant to manufacture the antenna, compute the unit product cost and income statement.
Characterize mondelez global staffing approach as geocentric : 1. Would you characterize Mondelez's global staffing approach as geocentric? Why? Why not?

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd