The following is a partially completed lower section of a departmental expense allocation for Cozy Bookstore. It reports the total amounts of direct and indirect expenses allocated to its five (5) departments. Allocate the expenses of the two service departments (advertising and purchasing) to the three operating departments and provide the complete income statement
.
![]()
Advertising and purchasing department expenses are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows.
![]()
Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units.
![]()
●
Classify all items listed in the fixed budget as variable or fixed.
●
Also determine their amounts per unit or their amounts for the year, as appropriate.
●
Identify the unit variable costs in the format of variable costing, according to your findings in part a
●
Organize a template for variable costing income statements in which the sales volume is a variable.
●
Test your template for 15,000 units sales volume to see if you get the same income as stated above
●
Find the breakeven point and provide the income statement at break even
●
Provide income statement at sales volume 12,000, 14,000, 16,000, and 18,000
The following is a partially completed lower section of a departmental expense allocation for Cozy Bookstore. It reports the total amounts of direct and indirect expenses allocated to its five (5) departments. Allocate the expenses of the two service departments (advertising and purchasing) to the three operating departments and provide the complete income statement. WESTCLIFF College of Business UNIVERSITY BUS 535 Syllabus Department Sales Purchase Orders 516 T. Ra 8 Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. [PORT Ig Pe For Year Ended December 31, 2019 $3,000,000 $975,000 225,000 Machinery repairs (variable cost) 60,000 Depreciation—Plant equipment (straight-line) 300,000 Utilities ($45,000 is variable) .. .. 195,000 Plant management salaries 200,000 1,955,000 1,045,000 75,000 Shipping... I 105,000 Sales salary (fixed annual amount) . ...................... 250.000 430,000 General and administrative expenses 125,000 241,000 90,000 456,000 § 159.000 o Classify all items listed in the fixed budget as variable or fixed. WESTCLIFF College of Business UNIVERSITY BUS 535 Syllabus ® Also determine their amounts per unit or their amounts for the year, as appropriate. eo Identifv the init variable cocte in the format of variable costine accordine to vonur o Classify all items listed in the fixed budget as variable or fixed. WESTCLIFF UNIVERSITY BUS 535 Syllabus ® Also determine their amounts per unit or their amounts for the year, as appropriate. o Identify the unit variable costs in the format of variable costing, according to your findings in part a ® Organize a template for variable costing income statements in which the sales volume is a variable. ® Test your template for 15,000 units sales volume to see if you get the same income as stated above o Find the breakeven point and provide the income statement at break even eo Provide income statement at sales volume 12,000, 14,000, 16,000, and 18,000