Trevor Company discloses supplementary operating segment information for its three reportable segments.Data for 20X8 are available as follows:
Additional 20X8 expenses include indirect operating expenses of $200,000.Appropriately selected common indirect operating expenses are allocated to segments based on the ratio of each segment's sales to total sales.The 20X8 operating profit for Segment B was:
A)$180,000
B)$120,000
C)$150,000
D)$250,000

Question

Quizplus · Accepted Answer

To calculate Segment B's operating profit, first allocate the indirect operating expenses based on the sales ratio. Then, subtract the allocated expenses from Segment B's operating income.

Trevor Company Discloses Supplementary Operating Segment Information for Its Three