Cost sheet,, Cost Accounting

Cost sheet, Cost Accounting

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Marple Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two offices-one in Houston and one in Dallas. The firm classifies the direct costs of consulting jobs as variable costs.

Assume that Dallas' sales by major market are as follows:

Market

Dallas Construction Clients Landscaping clients

Sales $660,000 100% $440,000 100% $220,000 100%

Variable Expenses 396,000 60 286,000 65 110,000 50

Contributioin Margin 264,000 40 154,00 35 110,000 50

Traceable fixed expenses 79,200 12 22,00 5 57,200 26

Market segment margin 184,800 28 132,000 30% 52,800 24%

common fixed expenses 19,800 3

not traceable to markets

office segment margin 165,000 25%

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