The Following Information Is Available for Yellowed Inc Unallocated Costs 1,000 _____ Is the Contribution by Segment for Divisions

question 132

Multiple Choice

The following information is available for Yellowed Inc.and its two divisions, Books and Periodicals: $\begin{array}{cccc}&\text { Company } & \text { Books } & \text { Periodicals } \\&\text { as a whole } & \text { Division } & \text { Division }\\\hline\text { Net sales } & \$ 100,000 & \$ 50,000 & \$ 50,000\\\text { Fixed costs: }\\\text { Controllable by }\\\text { division manager } & 16,500 & 12,500 & 4,000 \\\text { Controllable by others } & 8,000 & 5,000 & 3,000 \\\text { Variable costs: } & & & \\\text { Cost of merchandise sold } & 24,500 & 17,500 & 7,000 \\\text { Operating expenses } & 16,400 & 10,000 & 6,400\\\text { Unallocated costs }&1,000\end{array}$ Unallocated costs 1,000 _____ is the contribution by segment for the Periodicals Division.

• A)$29,600
• B)$36,600
• C)$28,600
• D)$32,600

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Definitions:

Milling Department

The milling department refers to a specific section within a manufacturing facility where milling, a process of using rotary cutters to remove material, is performed.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including those related to running the factory outside direct labor and materials.

Job-Order Costing System

A cost accounting system in which costs are assigned to specific jobs or orders, used in industries where goods or services are produced to order.

Machine-Hours

A measure of production time which quantifies the number of hours a machine is in operation.