Answer Happy

Diego Company manufactures one product that is sold for $77 per
unit in two geographic regions—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
expense $ 456,000 The company sold 33,000 units in the East region
and 10,000 units in the West region. It determined that $220,000 of
its fixed selling and administrative expense is traceable to the
West region, $170,000 is traceable to the East region, and the
remaining $66,000 is a common fixed expense. The company will
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.
13. Prepare a contribution format segmented income statement
that includes a Total column and columns for the East and West
regions.