Prairie Electronics, located in Regina, manufactures three product lines: (1) high-end speakers, (2) personal computers, and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Prairie Electronics, located in Regina, manufactures three product lines: (1) high-end speakers, (2) personal computers, and (3) handheld devices. For 2020, it compiled the following budgeted data: Personal Computers Handheld Devices Total High-end Speakers 340,000 1,500 Sales (in units) Price (per unit) 440,000 375 Variable costs per unit: Direct materials Direct labour $ 426 40 120 48 Overhead 80 37 Shipping 30 4 30 20 20 2 Sales commissions Direct fixed costs: Salaries Utilities $61,560,000 41,250,000 59,000,250 $ 70,250,000 55,005,000 112,600,000 $40,330,000 12,500, 600 30,250,000 Depreciation Common fixed costs: Corporate salaries Building depreciation Legal & accounting Other $33,460,000 27,900,800 41,380,640 11,340,760 Required: 1. & 2. Prepare a segmented performance report; Compute the contribution margin percentage and segment margin percentage. (Round "Percentage" answer to 1 decimal place, (i.e., 0.123 should be considered as 12.3%).) PRAIRIE ELECTRONICS Segment Performance Report Profit Centres High-end Personal Computers Handheld Devices Total Company Speakers Less: Variable expenses: Total variable expenses Less: Direct fixed costs Total fixed expenses Less: Common fixed costs Total common fixed costs $ $ $ % % 550,000 1,250 384 210 110 $ $ % % % % 3-a. Allocate the common fixed expenses equally to the three segments and prepare a performance report. (Negative amounts should be indicated with a minus sign.) PRAIRIE ELECTRONICS Profit Centres High-end Personal Handheld Total Company Speakers Computers Devices Less: Common fixed expenses Allocated portion Net income (loss) Prairie Electronics, located in Regina, manufactures three product lines: (1) high-end speakers, (2) personal computers, and (3) handheld devices. For 2020, it compiled the following budgeted data: Personal Computers Handheld Devices Total High-end Speakers 340,000 1,500 Sales (in units) Price (per unit) 440,000 375 Variable costs per unit: Direct materials Direct labour $ 426 40 120 48 Overhead 80 37 Shipping 30 4 30 20 20 2 Sales commissions Direct fixed costs: Salaries Utilities $61,560,000 41,250,000 59,000,250 $ 70,250,000 55,005,000 112,600,000 $40,330,000 12,500, 600 30,250,000 Depreciation Common fixed costs: Corporate salaries Building depreciation Legal & accounting Other $33,460,000 27,900,800 41,380,640 11,340,760 Required: 1. & 2. Prepare a segmented performance report; Compute the contribution margin percentage and segment margin percentage. (Round "Percentage" answer to 1 decimal place, (i.e., 0.123 should be considered as 12.3%).) PRAIRIE ELECTRONICS Segment Performance Report Profit Centres High-end Personal Computers Handheld Devices Total Company Speakers Less: Variable expenses: Total variable expenses Less: Direct fixed costs Total fixed expenses Less: Common fixed costs Total common fixed costs $ $ $ % % 550,000 1,250 384 210 110 $ $ % % % % 3-a. Allocate the common fixed expenses equally to the three segments and prepare a performance report. (Negative amounts should be indicated with a minus sign.) PRAIRIE ELECTRONICS Profit Centres High-end Personal Handheld Total Company Speakers Computers Devices Less: Common fixed expenses Allocated portion Net income (loss)
Expert Answer:
Answer rating: 100% (QA)
Sales Particulars Sales Less Variable cost Direct Material Direct Labour Overhead Shipping Sales Com... View the full answer
Related Book For
Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
Posted Date:
Students also viewed these accounting questions
-
Compute activity-based costing rates from the following budgeted data for Upton Golf Co.: Budgeted Cost Driver Activity Cost Pool Designing Machining Budgeted Cost 75,000 designer hours 21,000...
-
Solve 3 x = 12. Round your answer to two decimal places
-
Carla Inc. has the following budgeted data for 2010: Carla, Inc.: Budget Data Cash balance, beginning $10,000 Collections from customers $150,000 Expenses: Direct materials purchases $25,000...
-
In Exercises show that the two formulas are equivalent. tan x dx = - In cos x + C tan x dx = In|sec x] + C
-
The following gives the number of pints of type A blood used at Woodiawn Hospital in the past 6 weeks: Week Of Pints Used August 31 ......... 360 September 7 ........ 389 September 14 ......... 410...
-
a. Why are manufacturers' new orders, nondefense capital goods, an appropriate leading indicator? b. Why is the index of industrial production an appropriate coincident indicator? c. Why is the...
-
What circumstances might influence the growth or shrinkage of the nonprofit sector?
-
1. How would you deal with a star trader who would be extremely sensitive to additional controls that implied he or she wasnt trusted or would generate more time on paperwork and explanations? 2....
-
200,000 shares PEST INVESTIGATION CONTROL CORPORATION Of the shares being offered hereby, all 200,000 are being sold by the Pest Investigation Control Corporation, Inc. ("the Company"). Before the...
-
The Income Statement and Balance Sheet consistently tell a financial story. That story has many chapters and can change dramatically based upon macroeconomic conditions. Locate the Form 10-K of a...
-
Accounting practice exercise: President Kennedy Me-DA makes and sales journals. The journals are sold for $4.00 each. Fixed Operating Expenses amount to $110,000 and the variable cost per unit is...
-
Explain why acting ethically is an important value in the financial marketplace. Discuss ways that ethics should be embedded in financial decision-making processes to improve the public's trust of...
-
The Budget component must be constructed fora Marketing Strategy for the Model X (Tesla automobile). However,I'm having trouble coming up with a break-even analysis. Please provide an analisys that...
-
Overview Brooke owns a sole proprietorship and has been your client for several years. Her business customizes apparel for teams and corporate events around the Midwest, such as youth sports...
-
Customer Profitability Analysis Elite Services, Inc. provides residential painting services for three home building companies, Brookside, Edgewater, and Hillrose, and it uses a job costing system for...
-
During this session, you were introduced to marketing and the world in which it operates including the external and internal environment. Within the external environment, the marketer needs to not...
-
Sales Revenue Cost of Goods Sold Gross Profit Depreciation Expense Salaries and Wages Expense Net Income Accounts Receivable Inventory Accounts Payable Salaries and Wages Payable Required: Year 2...
-
The baseball player A hits the ball from a height of 3.36 ft with an initial velocity of 34.8 ft/s. 0.14 seconds after the ball is hit, player B who is standing 15 ft away from home plate begins to...
-
Refer to the data in Exercise 42. Required: Prepare quantity schedules and a computation of equivalent units for July for Department 1 using the FIFO method. Use the format of Exhibit 48/4-9. Pounds...
-
Carter Manufacturing Company manufactures exclusive pens which sell for $60 per unit. Its unit variable costs are $28 and fixed expenses are $384,000. The company pays income tax at the rate of 30%....
-
Selected sales and operating data for three divisions of a multinational structural engineering firmare provided below: Required: 1. Compute the ROI for each division using the formula stated in...
-
Why are stock markets important and what do they trade in?
-
How has the relative importance of the NYSE and LSE changed?
-
What was the importance of the Big Bang?
Study smarter with the SolutionInn App