Kinch_Problem 12-26 - Student Name: Class: Problem 12-25 1....

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Student Name: Class: Problem 12-25 1. NORTHSTAR COMPANY Actual Costs Allocated to Divisions Machine Special Tools Products Division Division Total cost allocated Variable Fixed Spending variance--not allocated 2. Costs allocated to each division for October: Total actual costs
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Given Data P12-25: NORTHSTAR COMPANY Maintenance department costs: Budgeted operating costs per month $80,000 plus cost per machine-hour $0.50 Peak-period requirements: Machine tools division 65% Special products division 35% October estimates of machine-hour activity: Machine tools division 90,000 Special products division 60,000 October actual machine-hour activity: Machine tools division 60,000 Special products division 60,000 Actual October costs: Maintenance department fixed costs $85,000 Maintenance department variable costs $78,000 Check figure: (1) Cost to Machine Tools Division $81,500
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Alex Kinch Class: TWF 2-3 Problem 12-26 RESTON COMPANY Segmented Income Statement Sales Territory Total Company Central Eastern Sales $900,000 100.0% $400,000 100% $500,000 100% Variable expenses 408,000 45.3% 208,000 52% 200,000 40% Contribution margin 492,000 54.7% 192,000 48% 300,000 60% Traceable fixed expenses 290,000 32.2% 160,000 40% 130,000 26% Territorial segment margin 202,000 22.4% $32,000 8% $170,000 34% Common fixed expenses 175,000 19.4% Correct! Correct! Correct! Correct! Net operating income $27,000 3.0% Correct! Correct! Product Line Central Territory Awls Pows Sales $400,000 100.0% $100,000 100% $300,000 100% Variable expenses 208,000 52.0% 25,000 25% 183,000 61% Contribution margin 192,000 48.0% 75,000 75% 117,000 39% Traceable fixed expenses 114,000 28.5% 60,000 60% 54,000 18% Product line segment margin 78,000 19.5% $15,000
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This homework help was uploaded on 04/14/2008 for the course ACCT 1021 taught by Professor Teti during the Spring '08 term at Saint Joseph's University.

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Kinch_Problem 12-26 - Student Name: Class: Problem 12-25 1....

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