Music Teachers, Incorporated, is an educational association for music teachers that has 19,900 members. The association...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Music Teachers, Incorporated, is an educational association for music teachers that has 19,900 members. The association operates from a central headquarters but has local membership chapters throughout the United States. Monthly meetings are held by the local chapters to discuss recent developments on topics of Interest to music teachers. The association's magazine, Teachers' Forum, Issued monthly with features about recent developments in the field. The association publishes books and reports and also sponsors professional courses that qualify for continuing professional education credit. The association's statement of revenues and expenses for the current year is presented below. Revenues Expenses: salaries Personnel costs Occupancy costs Music Teachers, Incorporated statement of Revenues and Expenses For the Year Ended November 30 Reimbursement of member costs to local chapters. other membership services Printing and paper Postage and shipping Instructors' fees General and administrative Total expenses Excess of revenues over expenses $ 3,340, 200 965,000 241,250 228,000 590,000 The board of directors of Music Teachers, Incorporated, has requested that a segmented Income statement be prepared showing the contribution of each segment to the association. The association has four segments: Membership Division, Magazine Subscriptions Division, Books and Reports Division, and Continuing Education Division. Mike Doyle has been assigned responsibility for preparing the segmented Income statement, and he has gathered the following data: 550,000 325,000 210,000 78,eee 34,000 3,221,250 $ 118,950 a. The 19,900 members of the association pay dues of $100 per year, of which $20 covers a one-year subscription to the Teachers' Forum. Other benefits include membership in the association and chapter affiliation. The portion of the dues covering the magazine subscription ($20) should be assigned to the Magazine Subscriptions Division. b. A total of 3,800 one-year subscriptions to Teachers' Forum were also sold last year to nonmembers and librarles at $34 per subscription. In addition to subscriptions, the Journal generated $101,000 in advertising revenues. Membership c. The costs to produce the Teachers' Forum magazine included $8 per subscription for printing and paper and $4 per subscription for postage and shipping. d. A total of 28,200 technical reports and professional texts were sold by the Books and Reports Division at an average selling price per unit of $25. Average costs per publication were $4 for printing and paper and $2 for postage and shipping. Salaries $ 222,000 e. The association offers a variety of continuing education courses to both members and nonmembers. The one-day courses had a tultion cost of $75 each and were attended by 2,500 students. A total of 1,820 students took two-day courses at a tultion cost of $125 for each student. Outside Instructors were paid to teach some courses. f. Salary costs and space occupled by division follow: Space Occupied (square feet) 3,000 f. Salary costs and space occupied by division follow: Membership Magazine Subscriptions Books and Reports Continuing Education Corporate staff Total Salaries $ 222,000 155,000 308,000 197,000 83,000 $ 965,000 Space Occupied (square feet) 3,000 1,000 Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $228,000 in occupancy costs (which can be allocated to segments based on their square feet occupled) Includes $50,000 in rental cost for a warehouse used by the Books and Reports Division for storage purposes. Assume that this cost could be avoided if the division were eliminated. 1,000 2,000 3,000 10,000 g. Printing and paper costs other than for magazine subscriptions and for books and reports relate to the Continuing Education Division. Sales: h. General and administrative expenses include costs relating to overall administration of the association as a whole. The company's corporate staff does some malling of materials for general administrative purposes. Total revenues Expenses traceable to segments: The expenses that can be traced or assigned to the corporate staff, as well as any other expenses that are not traceable to the segments, will be treated as common costs. It is not necessary to distinguish between variable and fixed costs. Required: 1. Prepare a segmented income statement for Music Teachers, Incorporated. This statement should show the segment margin for each division as well as results for the association as a whole. Music Teachers, Incorporated Segmented Income Statement For the year ended November 30 Association Total 0 Membership 0 Division Magazine Books & Subscriptions Reports 0 0 Continuing Education 0 < Prev 3 of 3 Next > Sales: Total revenues Expenses traceable to segments: Total traceable expenses Common expenses not traceable to divisions: Total common expenses For the year ended November 30 Association Total S 0 Membership 0 0 $ 0 0 0 0 0 Division Magazine Subscriptions $ 0 0 0 S Books & Reports 0 0 0 Continuing Education $ 0 0 Music Teachers, Incorporated, is an educational association for music teachers that has 19,900 members. The association operates from a central headquarters but has local membership chapters throughout the United States. Monthly meetings are held by the local chapters to discuss recent developments on topics of Interest to music teachers. The association's magazine, Teachers' Forum, Issued monthly with features about recent developments in the field. The association publishes books and reports and also sponsors professional courses that qualify for continuing professional education credit. The association's statement of revenues and expenses for the current year is presented below. Revenues Expenses: salaries Personnel costs Occupancy costs Music Teachers, Incorporated statement of Revenues and Expenses For the Year Ended November 30 Reimbursement of member costs to local chapters. other membership services Printing and paper Postage and shipping Instructors' fees General and administrative Total expenses Excess of revenues over expenses $ 3,340, 200 965,000 241,250 228,000 590,000 The board of directors of Music Teachers, Incorporated, has requested that a segmented Income statement be prepared showing the contribution of each segment to the association. The association has four segments: Membership Division, Magazine Subscriptions Division, Books and Reports Division, and Continuing Education Division. Mike Doyle has been assigned responsibility for preparing the segmented Income statement, and he has gathered the following data: 550,000 325,000 210,000 78,eee 34,000 3,221,250 $ 118,950 a. The 19,900 members of the association pay dues of $100 per year, of which $20 covers a one-year subscription to the Teachers' Forum. Other benefits include membership in the association and chapter affiliation. The portion of the dues covering the magazine subscription ($20) should be assigned to the Magazine Subscriptions Division. b. A total of 3,800 one-year subscriptions to Teachers' Forum were also sold last year to nonmembers and librarles at $34 per subscription. In addition to subscriptions, the Journal generated $101,000 in advertising revenues. Membership c. The costs to produce the Teachers' Forum magazine included $8 per subscription for printing and paper and $4 per subscription for postage and shipping. d. A total of 28,200 technical reports and professional texts were sold by the Books and Reports Division at an average selling price per unit of $25. Average costs per publication were $4 for printing and paper and $2 for postage and shipping. Salaries $ 222,000 e. The association offers a variety of continuing education courses to both members and nonmembers. The one-day courses had a tultion cost of $75 each and were attended by 2,500 students. A total of 1,820 students took two-day courses at a tultion cost of $125 for each student. Outside Instructors were paid to teach some courses. f. Salary costs and space occupled by division follow: Space Occupied (square feet) 3,000 f. Salary costs and space occupied by division follow: Membership Magazine Subscriptions Books and Reports Continuing Education Corporate staff Total Salaries $ 222,000 155,000 308,000 197,000 83,000 $ 965,000 Space Occupied (square feet) 3,000 1,000 Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $228,000 in occupancy costs (which can be allocated to segments based on their square feet occupled) Includes $50,000 in rental cost for a warehouse used by the Books and Reports Division for storage purposes. Assume that this cost could be avoided if the division were eliminated. 1,000 2,000 3,000 10,000 g. Printing and paper costs other than for magazine subscriptions and for books and reports relate to the Continuing Education Division. Sales: h. General and administrative expenses include costs relating to overall administration of the association as a whole. The company's corporate staff does some malling of materials for general administrative purposes. Total revenues Expenses traceable to segments: The expenses that can be traced or assigned to the corporate staff, as well as any other expenses that are not traceable to the segments, will be treated as common costs. It is not necessary to distinguish between variable and fixed costs. Required: 1. Prepare a segmented income statement for Music Teachers, Incorporated. This statement should show the segment margin for each division as well as results for the association as a whole. Music Teachers, Incorporated Segmented Income Statement For the year ended November 30 Association Total 0 Membership 0 Division Magazine Books & Subscriptions Reports 0 0 Continuing Education 0 < Prev 3 of 3 Next > Sales: Total revenues Expenses traceable to segments: Total traceable expenses Common expenses not traceable to divisions: Total common expenses For the year ended November 30 Association Total S 0 Membership 0 0 $ 0 0 0 0 0 Division Magazine Subscriptions $ 0 0 0 S Books & Reports 0 0 0 Continuing Education $ 0 0
Expert Answer:
Answer rating: 100% (QA)
Music Teachers Incorporated Segmented Income Statement For the year ended November 30 Segment Revenu... View the full answer
Posted Date:
Students also viewed these accounting questions
-
There are two mixtures of honey and water, the percentage of honey in them being 25% and 75% of the mixture respectively. If 2 gallons of the first are mixed with three gallons of the second, what...
-
5 / 4 + 9 / 2x = 3 / 8 x 1 / 4
-
If 1 mol of solid CBr4 is mixed with 2 mol of CCl4, what is the boiling point of this solution?
-
Under a plan of complete liquidation, Coast Corporation distributes land with a $300,000 adjusted basis and a $400,000 FMV to William, a 25% shareholder. William has a $200,000 basis in his Coast...
-
Explain why two managers employed by the same company may be diametrically opposed to each other when considering a transfer price.
-
Your client, EKB, Inc., prepared the following schedule for long-term debt for the audit of financial statements for the year ended December 31, 2019: Required: a. What type of evidence would you...
-
How can an organization justify implementing a CRM system ?
-
Danner Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2011. 1. Sales: Quarter 1,...
-
1. Charges +0.60 C and +5.78 C, are 26cm apart in the air. Calculate the potential energy and the work required to bring them to a distance of 13cm from each other. 2. A platinum wire with a diameter...
-
Assume it is Monday, May 1, 2020, the first business day of the month, and you have just been hired as the accountant for Alpine Company, which operates with monthly accounting periods. All of the...
-
What Is the roll of Human Resource in micro organization. Do human Resource supports in organization Behavior
-
Mr. G.C. Gupta, the erstwhile Marketing Director of Hindustan Industrial Corporation Ltd., has recently taken over as the Managing Director of the company. He is an engineer by qualification and a...
-
A particle carrying charge \(+q\) is placed at the center of a thick-walled conducting shell that has inner radius \(R\) and outer radius \(2 R\) and carries charge \(-4 q\). A thinwalled conducting...
-
Classify each of the following costs as a direct cost or an indirect cost, assuming that the cost object is the Juniors Department (clothing and accessories for teenage and young women) in the Stow...
-
Classify each of the following costs as fixed or variable: a. Cost of French fries used at a McDonalds restaurant b. Hourly wages paid to cashiers at The Home Depot c. Monthly sugar costs for The...
-
Each of the following scenarios describes some cost item for organizations in recent years. For each scenario, identify which function of the value chain that cost would represent (R&D, Design,...
-
What amount of money invested today at 2.49% compounded semiannually will have an accumulated value of $809,500 in 7 years from now. P/Y = PV = $ C/Y = PMT= $ N= FV = $ I/Y = %
-
How does health insurance risk differ from other types of insurance risk (e.g., automobile or homeowners insurance)? What is the difference between cost sharing and cost shifting? Is retiree health...
-
Two consortia of leading North American and European apparel retailers, the Alliance for Bangladesh Worker Safety and the Accord on Fire and Building Safety in Bangladesh, have pledged to provide...
-
Are the ethics of gift-giving different between high context and low-context cultures?
-
What is the cause of the safety issues plaguing Bangladesh textile factories? The garment industry has played a critical role in promoting the economic development of Bangladesh, a nation of 165...
Study smarter with the SolutionInn App