Exam 7: Master Budgeting

Waltz Corporation has two divisions: Xi and Sigma. Data from the most recent month appear below: The company's common fixed expenses total $65,100. The break-even in sales dollars for Sigma Division is closest to:

Iancu Corporation, which has only one product, has provided the following data concerning its most recent month of operations: What is the net operating income for the month under variable costing?

Crossbow Corp. produces a single product. Data concerning June's operations follow: For the year in question, net operating income under variable costing will be:

Sosinski Corporation has two divisions: Domestic Division and Foreign Division. The following data are for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. The Domestic Division's break-even sales is closest to:

Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: What is the net operating income for the month under absorption costing?

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the net operating income for the month under absorption costing?

Rollison Corporation has two divisions: Retail Division and Wholesale Division. The following data are for the most recent operating period: The common fixed expenses of the company are $76,300. The Wholesale Division's break-even sales in dollars is closest to:

The Los Angeles Division of Awercamp Manufacturing produces and markets two product lines: Racquets and Gloves. The following data were gathered on activities last month: Required: Prepare a segmented income statement for last month.

Meyer Corporation has two sales areas: North and South. During April, the contribution margin in the North was $90,000, or 30% of sales. The segment margin in the South was $25,000, or 10% of sales. Traceable fixed expenses were $30,000 in the North and $15,000 in the South. Meyer Corporation reported a total net operating income of $52,000. The total sales for Meyer Corporation were:

George Corporation has no beginning inventory and manufactures a single product. If the number of units produced exceeds the number of units sold, then net operating income under the absorption method for the year will:

Johnston Corporation manufactures a single product that it sells for $30 per unit. The company has the following cost structure: Last year there was no beginning inventory. During the year, 20,000 units were produced and 17,000 units were sold. Under absorption costing, the unit product cost would be:

Keefe Corporation has two divisions: Western Division and Eastern Division. The following report is for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. The Western Division's break-even sales is closest to:

Cervetti Corporation has two major business segments-East and West. In July, the East business segment had sales revenues of $220,000, variable expenses of $125,000, and traceable fixed expenses of $29,000. During the same month, the West business segment had sales revenues of $890,000, variable expenses of $472,000, and traceable fixed expenses of $169,000. The common fixed expenses totaled $246,000 and were allocated as follows: $123,000 to the East business segment and $123,000 to the West business segment. The contribution margin of the West business segment is:

Nantua Corporation has two divisions, Southern and Northern. The following information was taken from last year's income statement segmented by division: Net operating income last year for Nantua Corporation was $400,000. In last year's income statement segmented by division, what were Nantua's total common fixed expenses?

Propst Corporation has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period: Required: a. What is the Garden Division's break-even in sales dollars? b. What is the Farm Division's break-even in sales dollars? c. What is the company's overall break-even in sales dollars? d. What would be the company's overall net operating income if the company operated at its two division's break-even points?

Walkenhorst Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. Required: a. What is the Bulb Division's break-even in sales dollars? b. What is the Seed Division's break-even in sales dollars? c. What is the company's overall break-even in sales dollars?

Nantua Corporation has two divisions, Southern and Northern. The following information was taken from last year's income statement segmented by division: Net operating income last year for Nantua Corporation was $400,000. If the Northern Division's sales last year were $300,000 higher, how would this have changed Nantua's net operating income? (Assume no change in selling prices, variable expenses per unit, or fixed expenses.)

Harris Corporation produces a single product. Last year, Harris manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows: Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be:

Hossack Corporation produces a single product and has the following cost structure: The unit product cost under absorption costing is:

If a cost must be arbitrarily allocated in order to be assigned to a particular segment, then that cost should not be considered a common cost.