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?

Question

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The Answer of 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?

Shaley Company Has Two Divisions and the Following Information Available