Snow Bunny, Inc. reports the following for its snowboard department for the year

Question

Snow Bunny, Inc. reports the following for its snowboard department for the year 2017. All of its costs are direct except as noted: 17. Sales Cost of Goods Sold Salaries $605,000 425,000 $112,000($15,000 is indirect) $14,000 ($3,000 is indirect) $42,000 ($10,000 is indirect) $20,000 (all is indirect) Utilities Depreciation Office Expenses Prepare a departmental income statement for 2017. Use attached sheet. (8pts) a. How much does the Snowboard department contribute to overhead? (Give a dollar amount?) (2 pts) b.

Explanation / Answer

a) Departmental Income Statement Sales $605,000 Cost of goods sold $425,000 Gross Profit $180,000 Fixed Overhead direct $140,000 Salaries $97,000 Utilities $11,000 Depreciation $32,000 Fixed Overhead indirect $48,000 Salaries $15,000 Utilities $3,000 Depreciation $10,000 Office expenses $20,000 Net Profit/(Loss) before tax -$8,000 b) Department contribution to overheads Gross profit $180,000 Less:Fixed direct exp $140,000 Contribution to overheads $40,000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.