Williams Co Required:
Prepare an Income Statement Showing the Departmental Contributions to Data

question 99

Essay

Williams Co. operates three separate departments (R, S, T). The data below is provided for the current year:
$\begin{array}{ll} \text {Total Sales }& \text {\( \$ 120,000(\$ 40,000 \) from each department)}\\ \text { Cost of Goods Sold } & 80,000(50 \% \text { from R; } 25 \% \text { from } \mathrm{S} ; 25 \% \text { from T) } \\ \text { Direct Expense. } & \$ 26,000(\$ 6,000 \text { from } R ; \$ 12,000 \text { from } S ; \$ 8,000 \text { from } T) \\\text { Indirect Expenses }& 9,000\end{array}$
Required:
Prepare an income statement showing the departmental contributions to overhead for the current year.

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Definitions:

Independent Variables

Refers to the inputs or predictors in a statistical model that are manipulated or selected by the researcher to determine their effect on the dependent variable.

COV

A measure of relative variability computed as the standard deviation divided by the mean; also known as the coefficient of variation.

Independent Variables

Variables in a statistical model that are presumed to influence or predict the outcome of a dependent variable.

Variances

Statistical measures reflecting the dispersion or spread of a set of data points or how far each value in the set is from the mean.