Spein Company is a diversified company that discloses supplemental financial information on its segments. The following information is available for 2019: Sales Traceable Costs Allocable Costs Segment X $400,000 $225,000 Segment Y 300,000 240,000 Segment Z 200,000 135,000 Totals $900,000 $600,000 $150,000 6 Allocable costs are assigned based on the ratio of a segment’s income before allocable costs to total income before allocable costs. This is an appropriate method of allocation. Segment Y’s profit for 2019 is ____________________.
Spein Company is a diversified company that discloses supplemental financial information on its
segments. The following information is available for 2019:
Sales Traceable Costs Allocable Costs
Segment X $400,000 $225,000
Segment Y 300,000 240,000
Segment Z 200,000 135,000
Totals $900,000 $600,000 $150,000
6
Allocable costs are assigned based on the ratio of a segment’s income before allocable costs to total
income before allocable costs. This is an appropriate method of allocation. Segment Y’s profit for 2019
is ____________________.
A. 32,400 Small; 8,100 Medium; 1,620 Large
B. 34,808 Small; 8,700 Medium; 1,740 Large
C. 37,010 Small; 9,250 Medium; 1,850 Large
D. 38,505 Small; 9,625 Medium; 1,925 Large
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