Question
US Products operates two divisions with the following sales and expense formation for the month of...
US Products operates two divisions with the following sales and expense formation for the month of July East Division Sales $240.000. Corton margin ratio . Directed expenses $40.000 West Division Sales $60.000. Contribution margin ratio Sox, Directed expenses $32,000 US Products' total fixed expenses during July was $200,000 The East Division's segment margin for July Multiple Choice O ooo
Which of the following product cost components will not need flexing when analyzing end of period production cost variance Multiple Choice 0 Direct material 0 Direct labor O Variable manufacturing overhead O Foxed manufacturing overhead.
Answers
1. East division segment margin = Contribution margin - Direct fixed expense
= 240000*0.35 - 48000
= $36000
2. Fixed manufacturing overhead
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