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ech Services Department $966,000 urchasing Department 380,000 ther corporate administrative expenses 579,000 otal expense $1,925,000 he other corporate administrative expenses include officers' salaries and o epartment, and the Purchasing Department allocates costs to the divisions onsumer Division Commercial Division Total Tech Services 430 computers 270 700 computers Purchasing 5,300 purchase 9,900 15,200 purchase he support department allocations of the Tech Services Department and the evenues, cost of goods sold, and operating expenses for the two divisions Consumer Commercial $8,536,700 $7,185,900 4,742,600 3,628,500 1,674,500 1,796,300 evenues Cost of goods sold Operating expenses repare the divisional income statements for the two divisions. Do not roun

ech Services Department $966,000 urchasing Department 380,000 ther corporate administrative expenses 579,000 otal expense $1,925,000 he other corporate administrative expenses include officers' salaries and o epartment, and the Purchasing Department allocates costs to the divisions onsumer Division Commercial Division Total Tech Services 430 computers 270 700 computers Purchasing 5,300 purchase 9,900 15,200 purchase he support department allocations of the Tech Services Department and the evenues, cost of goods sold, and operating expenses for the two divisions Consumer Commercial $8,536,700 $7,185,900 4,742,600 3,628,500 1,674,500 1,796,300 evenues Cost of goods sold Operating expenses repare the divisional income statements for the two divisions. Do not roun

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Divisional income statement 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 21, 20Y7, are as follows:
Tech Services Department Purchasing Department Other corporate administrative expenses Total expense $1,925,000 The other corporate administrative expenses include officers' salaries and ot department, and the Purchasing Department allocates costs to the divisions Purchasing $966,000 380,000 579,000 Tech Services Consumer Division Commercial Division Total 430 computers 5,300 purchase c 270 9,900 700 computers 15,200 purchase c The support department allocations of the Tech Services Department and the revenues, cost of goods sold, and operating expenses for the two divisions a Consumer Commercial $8,536,700 4,742,600 1,674,500 Revenues $7,185,900 Cost of goods sold 3,628,500 Operating expenses 1,796,300 Prepare the divisional income statements for the two divisions. Do not roun Horton Technology
Transcribed Image Text:Tech Services Department Purchasing Department Other corporate administrative expenses Total expense $1,925,000 The other corporate administrative expenses include officers' salaries and ot department, and the Purchasing Department allocates costs to the divisions Purchasing $966,000 380,000 579,000 Tech Services Consumer Division Commercial Division Total 430 computers 5,300 purchase c 270 9,900 700 computers 15,200 purchase c The support department allocations of the Tech Services Department and the revenues, cost of goods sold, and operating expenses for the two divisions a Consumer Commercial $8,536,700 4,742,600 1,674,500 Revenues $7,185,900 Cost of goods sold 3,628,500 Operating expenses 1,796,300 Prepare the divisional income statements for the two divisions. Do not roun Horton Technology
The other corporate administrative expenses include officers salaries and other expenses required by the corporation. The Tech Services Department alates outs to the divisions bed in the number of comparinthe department, and the Purchasing Department allocates casts to the divisions based on the number of purchase orders for each department. The services ust as flame Purchasing Consumer Division Commercial Division 430 computers 270 3,300 purchase orders 9,900 200 computers 15,200 purchase orders The support department allocations of the Tech Services Department and the Purchasing Department are considered controlable by the divisions Corporate abi revenues, cost of goods sold, and operating expenses for the two divisions are as flows Consumer Commercial $8,536,700 4,242,600 1674,500 Total Tech Services Revenues 17,165,900 Cost of goods sold 3.628,500 Operating expenses 1,795,300 Prepare the disional income statements for the two divisions. Do not round your interim calculations. Horton Technology Divisional Income Statements For the Year Ended December 31, 2017 Line Item Description Operating income before support department allocations Support department allocations Total support department allocations Consumer Commercial Divisise Division 000000000 QOOOO OOOO Not Tea Grad
Transcribed Image Text:The other corporate administrative expenses include officers salaries and other expenses required by the corporation. The Tech Services Department alates outs to the divisions bed in the number of comparinthe department, and the Purchasing Department allocates casts to the divisions based on the number of purchase orders for each department. The services ust as flame Purchasing Consumer Division Commercial Division 430 computers 270 3,300 purchase orders 9,900 200 computers 15,200 purchase orders The support department allocations of the Tech Services Department and the Purchasing Department are considered controlable by the divisions Corporate abi revenues, cost of goods sold, and operating expenses for the two divisions are as flows Consumer Commercial $8,536,700 4,242,600 1674,500 Total Tech Services Revenues 17,165,900 Cost of goods sold 3.628,500 Operating expenses 1,795,300 Prepare the disional income statements for the two divisions. Do not round your interim calculations. Horton Technology Divisional Income Statements For the Year Ended December 31, 2017 Line Item Description Operating income before support department allocations Support department allocations Total support department allocations Consumer Commercial Divisise Division 000000000 QOOOO OOOO Not Tea Grad
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