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Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the East and West regions

Posted: Mon May 30, 2022 8:04 am
by answerhappygod
Diego Company Manufactures One Product That Is Sold For 70 Per Unit In Two Geographic Regions The East And West Regions 1
Diego Company Manufactures One Product That Is Sold For 70 Per Unit In Two Geographic Regions The East And West Regions 1 (59.6 KiB) Viewed 13 times
Prepare a contribution format segmented income statement that
includes a Total column and columns for the East and West
regions
Diego Company manufactures one product that is sold for $70 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 41,000 units and sold 36,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor $ 20 $ 10 $2 $ 4 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $984,000 $ 308,000 Fixed selling and administrative expense The company sold 26,000 units in the East region and 10,000 units in the West region. It determined that $150,000 of its fixed selling and administrative expense is traceable to the West region, $100,000 is traceable to the East region, and the remaining $58,000 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.