Bergeron corporation’s fine furniture division reported a net operating income of $3,200,000 in the most recent reporting period. the division absorbed indirect fixed corporate expenses of $1,400,000. what was the division’s controllable margin? a : $4,600,000 b : $2,300,000 c : $1,400,000 d : $1,800,000

The correct answer is D

Explanation:

The division controllable margin is computed with the formula is as:

Division Controllable margin = Net Operating Income - Indirect fixed expense

where the values

Net Operating Income is $3,200,000

Indirect fixed expense is $1,400,000

Putting the values in the above formula:

= $3,200,000 - $1,400,000

= $1,800,000

So, the division controllable margin amounts to $1,800,000

a.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o