Related questions with answers

Carlton Company is involved in four separate industries. The following information is available for each of the four industries.

Operating SegmentTotal RevenueOperating Profit (Loss)Identifiable AssetsW$60,000$15,000$167,000X10,0003,00083,000Y23,000(2,000)21,000Z9,0001,00019,000$102,000$17,000$290,000\begin{array}{cccccc} \underline{\hspace{5pt}\text{Operating Segment}\hspace{5pt}}&&\underline{\hspace{10pt}\text{Total Revenue}\hspace{10pt}}&\hspace{10pt}&\underline{\hspace{5pt}\text{Operating Profit (Loss)}\hspace{5pt}}&&\underline{\hspace{5pt}\text{Identifiable Assets}\hspace{5pt}}&\hspace{10pt}\\ \text{W}&&\$60,000\hspace{5pt}&&\text{\$15,000}\hspace{10pt}&&\$167,000\hspace{10pt}\\ \text{X}&&10,000&&\text{3,000}&&83,000\\ \text{Y}&&23,000&&\text{(2,000)}&&21,000\\ \text{Z}&&\underline{\hspace{15pt}\text{9,000}\hspace{8pt}}&&\underline{\hspace{15pt}\text{1,000}\hspace{15pt}}&&\underline{\hspace{15pt}\text{19,000}\hspace{13pt}}\\ \text{}&&\underline{\underline{\$\hspace{5pt}\text{102,000}\hspace{3pt}}}&&\underline{\underline{\$\hspace{8pt}\text{17,000}\hspace{10pt}}}&&\underline{\underline{\$\hspace{7pt}\text{290,000}\hspace{10pt}}}\\ \end{array}

Instructions

Determine which of the operating segments are reportable based on the:

a. Revenue test.

b. Operating profit (loss) test.

c. Identifiable assets test.

Question

Determine the (a) overhead, (b) net profit and (c) net-profit rate.

 Item  Markup  Selling  Price  Overhead  Percent  Overhead  Net Profit  Net-Profit  Rate  Dishwasher $239.56$446.5040% a.  b.  c. \scriptscriptstyle\begin{array}{|l|l|c|c|l|l|l|} \hline \text { Item } & \text { Markup } & \begin{array}{c} \text { Selling } \\ \text { Price } \end{array} & \begin{array}{c} \text { Overhead } \\ \text { Percent } \end{array} & \text { Overhead } & \text { Net Profit } & \begin{array}{c} \text { Net-Profit } \\ \text { Rate } \end{array} \\ \hline \text { Dishwasher } & \$ 239.56 & \$ 446.50 & 40 \% & \text { a. } & \text { b. } & \text { c. } \\ \hline \end{array}

Solution

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Overhead=$446.5×40%=$178.6\text{Overhead} = \$446.5 \times 40 \% = \$ 178.6

Overhead = Selling price x overhead percent

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