H13-723_V2.0 Exam Questions and Answers

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What is the total contribution to corporate profits generated by Division A before allocation of central corporate expenses?
A. US $90,000
B. US $20,000
C. US $18,000
D. US $30,000
Answer: D
Division As total contribution to corporate pr: ruits includes everything except the central corporate expense allocation. Thus, the total contribution is US $31'_1,000 $150,000 sales
* $10,000 other revenue - $30,000 direct materials - $20,000 direct labor- $5,001'_i variable overhead - $25,000 fixed overhead - $15,000 variable S '.A e i n-,e - $35,000 fixed c .-,:{-pease).

C:\Documents and Settings\usernwz1\Desktop\1.PNG A and B, are autonomous divisions of a corporation. They have no beginning or ending
inventories, and the number of units produced is equal to the number of un1Ls sold. Following is financial information relating to the two divisions:

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