Divisional income statements with support department allocations Horton Technology has two divisions Consumer and Commercial and two corporate support departments, Tech Services and Purchasing. The corporate expenses for the year ended December 31, 2017, are as follows: ACCT 102 Chapter 24 - Homework assignment take frame Tear Services Department Purchasing Department 292,000 457,000 Other corporate administrative expenses Total expense $1,519,500 The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Services Department allocates costs to the divisions based on the number of computers in the department, and the Purchasing Department allocates costs to the divisi based on the number of purchase orders for each department. The services used by the two divisions are as follows: Consumer Division Commercial Division Total Tech Services 410 computers 260 670 Purchasing 5,100 purchase orders Revenues Cost of goods sold 3,746,900 Operating expenses 9,500 14,600 purchase orders computers The support department allocations of the Tech Services Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows: Consumer Commercial $6,744,400 $5,666,900 2,861,500 1,322,900 1,416,600
Divisional income statements with support department allocations Horton Technology has two divisions Consumer and Commercial and two corporate support departments, Tech Services and Purchasing. The corporate expenses for the year ended December 31, 2017, are as follows: ACCT 102 Chapter 24 - Homework assignment take frame Tear Services Department Purchasing Department 292,000 457,000 Other corporate administrative expenses Total expense $1,519,500 The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Services Department allocates costs to the divisions based on the number of computers in the department, and the Purchasing Department allocates costs to the divisi based on the number of purchase orders for each department. The services used by the two divisions are as follows: Consumer Division Commercial Division Total Tech Services 410 computers 260 670 Purchasing 5,100 purchase orders Revenues Cost of goods sold 3,746,900 Operating expenses 9,500 14,600 purchase orders computers The support department allocations of the Tech Services Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows: Consumer Commercial $6,744,400 $5,666,900 2,861,500 1,322,900 1,416,600
Chapter1: Financial Statements And Business Decisions
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