Friday, October 10, 2014

Segment reporting by division Grecian Products, Inc., has two divisions, Athens and Sparta. For the...

Segment reporting by division

Grecian Products, Inc., has two divisions, Athens and Sparta. For the month ended March 31, Athens had sales and variable costs of $500,000 and $225,000, respectively, and Sparta had sales and variable costs of $800,000 and $475,000, respectively. Athens had direct fixed production and administrative expenses of $60,000 and $35,000, respectively, and Sparta had direct fixed production and administrative expenses of $80,000 and $45,000, respectively. Fixed costs that were common to both divisions and couldn’t be allocated to the divisions in any meaningful way were selling, $33,000, and administration, $27,000. Prepare a segmented income statement by division for the month of March.

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