Shaley Company Has Two Divisions and the Following Information Available

question 131

Essay

Shaley Company has two divisions and the following information available:
a.Net sales were $130,000.$90,000 was attributed to the Jewel Division.
b.Variable costs were $80,000.40% was attributed to the Song Division.
c.Total separable fixed costs controllable by division managers were $30,000,of which $20,000 applied to the Jewel Division.
d.Total separable fixed costs,not controllable by division managers were $10,000 in the Jewel Division and $4,000 in the Song Division.
e.Unallocated costs were $7,000.
Required:
1.Prepare a contribution approach income statement for the company as a whole and each division.
2.Which division manager should receive a bonus? Why?

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Definitions:

Classical Conditioning

An educational technique involving the repeated pairing of two cues, resulting in a behavior initially prompted by the second cue being provoked by the first cue without the second.

Second-order Conditioning

A form of conditioning in which a stimulus that was previously neutral is paired with a conditioned stimulus to produce a similar conditioned response.

Stimulus Generalization

The process by which a conditioned response is triggered by stimuli that are similar but not identical to the original conditioned stimulus.