Jamesway Corporation has two separate divisions that operate as profit centers.

Question

Jamesway Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year:

  

  

The White Division occupies 32,000 square feet in the plant. The Grey Division occupies 48,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $80,000. Compute departmental income for the White and Grey Divisions, respectively. (Do not round your intermediate computations)

$341,000; $217,000.

$563,000; $433,000.

$153,000; $226,000.

$153,000; $265,000.

$410,000; $322,000.

Jamesway Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year:

Explanation / Answer

Answer

$341,000; $217,000.

White Division Grey Division   Sales (net) 600000 490000   Cost of goods sold 190000 168000 Gross Margin 410000 322000 Indirect Expenses: Salary expense 37000 57000 Rent Expenses : 80000* 32000/(32000+48000) 32000 80000* 48000/(32000+48000) 48000 Total Indirect Expenses 69000 105000 Departmental income 341000 217000

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