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3 years ago

The following data is from the Ace Guitar Company for the A and B regions.

Business

1 answer:

Marina CMI [18]3 years ago

8 0

Answer:

Ace Guitar Company

The service departments' expenses proportional to the sales of each region are as follows:

A Region = $216,580

B Region = $116,620

Explanation:

a) Data and Calculations:

A Region B Region Total

Sales $773,500 $416,500 $1,190,000

Cost of goods sold 293,900 158,300 452,200

Selling expenses 185,600 100,000 285,600

Service department expenses

Purchasing $199,900

Payroll accounting 133,300

Total $333,200

A Region = $216,580 ($773,500 / $1,190,000 * $333,200)

B Region = $116,620 ($416,500 / $1,190,000 * $333,200)

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