Vortex Company operates a retail store with two departments. Information about those departments follows. Department A...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Vortex Company operates a retail store with two departments. Information about those departments follows. Department A Department B $437,500 $812,500 480,000 284,375 Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities Depreciation Maintenance Salaries. Insurance Depreciation office expenses 123,000 12,000 23,500 16,500 6,700 The company also incurred the following indirect costs. Department A $34,000 6,400 15,400 45,000 83,000 10,500 26,500 13,000 5,000 Indirect costs are allocated as follows: salaries on the basis of sales; Insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. Additional information about the departments follows. Square footage 34,300 14,700 Number of employees 66 44 Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department B. 2. Should Department B be eliminated? Required 1 Required 2 Determine the departmental contribution to overhead and the departmental net income for (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Depreciation Maintenance VORTEX COMPANY Departmental Contribution Statements Sales Cost of goods sold Gross profit Direct expenses Salaries Insurance Utilities Total direct expenses Departmental contributions to overhead Allocated indirect expenses Salaries Insurance Depreciation Office Total indirect expenses Operating income (loss) Department A Department B $ 812,500 $ 437,500 480,000 284,375 332,500 153,125 123,000 12,000 23,500 16,500 6,700 181,700 150,800 0 $ 150,800 $ 83,000 10,500 26,500 13,000 5,000 138,000 15,125 0 15,125 < Prev 11 of 12 www Nex Required 1 Required 2 Should Department B be eliminated? Should Department B be eliminated? Yes. < Required 1 Required 2 > Vortex Company operates a retail store with two departments. Information about those departments follows. Department A Department B $437,500 $812,500 480,000 284,375 Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities Depreciation Maintenance Salaries. Insurance Depreciation office expenses 123,000 12,000 23,500 16,500 6,700 The company also incurred the following indirect costs. Department A $34,000 6,400 15,400 45,000 83,000 10,500 26,500 13,000 5,000 Indirect costs are allocated as follows: salaries on the basis of sales; Insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. Additional information about the departments follows. Square footage 34,300 14,700 Number of employees 66 44 Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department B. 2. Should Department B be eliminated? Required 1 Required 2 Determine the departmental contribution to overhead and the departmental net income for (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Depreciation Maintenance VORTEX COMPANY Departmental Contribution Statements Sales Cost of goods sold Gross profit Direct expenses Salaries Insurance Utilities Total direct expenses Departmental contributions to overhead Allocated indirect expenses Salaries Insurance Depreciation Office Total indirect expenses Operating income (loss) Department A Department B $ 812,500 $ 437,500 480,000 284,375 332,500 153,125 123,000 12,000 23,500 16,500 6,700 181,700 150,800 0 $ 150,800 $ 83,000 10,500 26,500 13,000 5,000 138,000 15,125 0 15,125 < Prev 11 of 12 www Nex Required 1 Required 2 Should Department B be eliminated? Should Department B be eliminated? Yes. < Required 1 Required 2 >
Expert Answer:
Answer rating: 100% (QA)
Answer 1 Particulars Department A Department B Sales 812500 437500 Less Cost of Goods Sold 480000 28... View the full answer
Related Book For
Project Management Achieving Competitive Advantage
ISBN: 978-0133798074
4th edition
Authors: Jeffrey K. Pinto
Posted Date:
Students also viewed these accounting questions
-
Using the data in the table below, estimate the demand function for cod. Prices, dollar per pound Quantity, thousand pounds per day 1.90 1.5 1.35 2.2 1.25 4.4 1.20 5.9 0.95 6.5 0.85 7.0 0.73 8.8...
-
The data in the table below represent time study observations for a woodworking operation. a. Based on the observations, determine the standard time for the operation, assuming an allowance of 15...
-
Using the data in the Excel file Cereal Data, develop a probability mass function and cumulative distribution function (both tabular and as charts) for the random variable Calories. What is the...
-
KE- Data table Industry averages Debt ratio Times interest eamed ratio Fixed-payment coverage ratio Debt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $3,560,000...
-
A refrigerator using R-134a is located in a 20C room. Consider the cycle to be ideal, except that the compressor is neither adiabatic nor reversible. Saturated vapor at -20C enters the compressor,...
-
Communication is an essential means to convey important information to the organization. Or it can provide other information such as events, benefits and many other situations. How effective can an...
-
Waddell Sc Reed, Inc., has the following stockholders' equity: First, determine whether preferred stock is cumulative or noncumulative. Then compute the amount of dividends to preferred and to common...
-
Manufacturing cost flow for one-year period Burnside Manufacturing started 2011 with the following account balances. Transactions during 2011 1. Purchased $750 of raw materials with cash. 2....
-
Describe a job analysis technique (data collection method) you would use for a particular organization and job position of your choice. Summarize what the method would involve. Discuss its advantages...
-
Dave LaCroix recently received a 10 percent capital and profits Interest in Cirque Capital LLC In exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the...
-
The choice between establishing a charitable remainder trust and a charitable lead trust is sometimes influenced by the current interest rates. Explain the possible consequences if a) current...
-
Sybilla confided in Robert about her situation following an abusive incident with Peter. Robert offered to help her by sponsoring her to stay in Australia as an Australian citizen. Sybilla, after...
-
You work for a large healthcare delivery system that is rooted in high performance and boasts innovation and the highest quality standards. Its' executive leadership and governing board continue to...
-
Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.7%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a...
-
9. A ping pong ball is smashed straight down the centre line of the table at 60.0 km/h. However, the game is outdoors and a crosswind of 25.0 km/h sweeps across the table parallel to the net. How...
-
Suppose the economy is populated by many identical agents. They live for two periods: t and t + 1. They act as price takers and receive exogenous amounts of current and future income, Yt and Yt+1....
-
Florida Kitchens produces high-end cooking ranges. The costs to manufacture and market the ranges at the company's volume of 3,000 units per quarter are shown in the following table: Unit...
-
Catalytic hydrogenation of naphthalene over PdC results in rapid addition of 2 moles of H 2 . Propose a structure for this product.
-
The advantage of Gantt charts lies in their linkage to the project schedule baseline. Explain this concept.
-
Why was one of the earliest project tracking devices referred to as an S-curve? Do you see value in the desire to link budget and schedule to view project performance?
-
The chapter suggests that a definition of strategic management includes four components: a. Developing a strategic vision and sense of mission b. Formulating, implementing, and evaluating c. Making...
-
The height of Watt's governor is (a) directly proportional to the speed (b) directly proportional to the (speed) \({ }^{2}\) (c) inversely proportional to the speed (d) inversely proportional to the...
-
Consider the following statements in respect of four-bar mechanisms: 1). It is possible to have the length of one link greater than the sum of lengths of the other three links 2). If the sum of the...
-
The Fig. 87 shows a critically damped spring-mass system undergoing single degree of freedom vibrations. If \(m=5 \mathrm{~kg}\) and \(k=20 \mathrm{~N} / \mathrm{m}\), the value of viscous damping...
Study smarter with the SolutionInn App