San Mateo Circuitry manufactures electrical instruments for a variety of purposes. The following costs related to maintaining product quality were incurred in May.

San Mateo Circuitry manufactures electrical instruments for a variety of purposes. The following costs related to maintaining product quality were incurred in May.

  

Training of quality-control inspectors	$	23,000
Tests of instruments before sale		35,000
Inspection of electrical components purchased from outside suppliers		14,000
Costs of rework on faulty instruments		6,000
Replacement of instruments already sold, which were still covered by warranty		16,200
Costs of defective parts that cannot be salvaged		6,300

  

Required:

Prepare a quality-cost report. (Round "Percentage of total" to 1 decimal place. Total may not be equal to 100 due to rounding error. Omit the "$" & "%" signs in your response.)

  

SAN MATEO CIRCUITRY
QUALITY-COST REPORT
FOR THE MONTH OF MAY
	Costs for May	Percentage of Total
Prevention cost :
Training of quality-control inspectors	$ 23,000	22.9
Total	$ 23,000	22.9
Appraisal cost :
Tests of instruments	$ 35,000	34.8
Inspection of purchased electrical components	14,000	13.9
Total	$ 49,000	48.8
Internal failure cost :
Costs of rework	$ 6,000	6.0
Costs of defective parts that cannot be salvaged	6,300	6.3
Total	$ 12,300	12.3
External failure cost :
Replacement of instruments already sold	$ 16,200	16.1
Total	$ 16,200	16.1
Total quality costs	$ 100,500	100.0

Countywide Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended follow. Metro Suburban Outlying Service revenue $ 1,040,000 $ 860,000 $ 400,000 Variable expenses 280,000 156,000 110,000 Controllable fixed expenses 400,000 326,000 156,000 Fixed expenses controllable by others 236,000 280,000 91,000 In addition to the expenses listed above, the company has $98,000 of common fixed expenses. Income-tax expense for the year is $45,000.

Countywide Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended follow.

    

	Metro			Suburban			Outlying
Service revenue	$	1,040,000		$	860,000		$	400,000
Variable expenses		280,000			156,000			110,000
Controllable fixed expenses		400,000			326,000			156,000
Fixed expenses controllable by others		236,000			280,000			91,000

    

In addition to the expenses listed above, the company has $98,000 of common fixed expenses. Income-tax expense for the year is $45,000.

  

Required:

1.	Prepare a segmented income statement for Countywide Cable Services, Inc. (Input all amounts as positive values. Omit the "$" sign in your response.)

  

SEGMENTED INCOME STATEMENTS: COUNTYWIDE CABLE SERVICES, INC.
	Countywide	Segments of Company
	Cable
	Services	Metro	Suburban	Outlying
Service revenue	$ 2,300,000	$ 1,040,000	$ 860,000	$ 400,000
Variable expenses	546,000	280,000	156,000	110,000
Segment contribution margin	$ 1,754,000	$ 760,000	$ 704,000	$ 290,000
Less : Fixed expenses controllable by        segment manager	882,000	400,000	326,000	156,000
Profit margin controllable by segment manager	$ 872,000	$ 360,000	$ 378,000	$ 134,000
Less : Fixed expenses, traceable to        segment, but controllable by others	607,000	236,000	280,000	91,000
Profit margin traceable to segment	$ 265,000	$ 124,000	$ 98,000	$ 43,000
Less : Common fixed expenses	98,000
Income before taxes	$ 167,000
Less : Income tax expense	45,000
Net income	$ 122,000