Prepare a contibution format segmented income statement

Reference no: EM131808837

The following information applies to the questions displayed below] Diego Company manufactures one product that Is sold for $77 per unit In two geographic reglons-the East and West regions. The following Information pertains to the company's first year of operations in which it produced 48,000 units and sold 43,000 units.

Variable costs per unit:

Manufacturing:

Direct materials $ 27

Direct labor $ 12

Variable manufacturing overhead $ 3

Variable selling and administrative $ 5

Fixed costs per year:

Fixed manufacturing overhead $ 864.000

Fixed selling and administrative expenses $ 456.000

The company sold 33.000 units in the East reglon and 10,000 units in the west reglon. It determined that $220.000 of its fixed selling and administrative expenses Is traceable to the West reglon. $170,000 ls traceable to the East region, and the remaining $66,000 ls a common fixed cost The company wll 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.

What is the amount of the difference between the variable costing and absorption costing net operating income(losses)?

Prepare a contibution format segmented income statement that includes a Total column and columns for the East and West Regions.

Reference no: EM131808837

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