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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: Tech Services Department Purchasing Department Other corporate administrative expenses Total expense $1,946,400 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 divisions 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 Operating expenses $1,125,900 235,500 585,000 500 computers 310 810 Revenues Cost of goods sold 5,079,800 Purchasing 1,793,500 5,500 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: Line Item Description 10.200 Consumer Commercial $9,143,600 $6,766,600 3,416,800 15,700 purchase orders 1,691,500 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Horton Technology Chapter 24 Exam assignment take frame Divisional Income Statements For the Year Ended December 31, 2017 Operating income before support department allocations Support department allocations: Total support department allocations Consumer Division 000000000 Commercial Division 000000000

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: Tech Services Department Purchasing Department Other corporate administrative expenses Total expense $1,946,400 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 divisions 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 Operating expenses $1,125,900 235,500 585,000 500 computers 310 810 Revenues Cost of goods sold 5,079,800 Purchasing 1,793,500 5,500 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: Line Item Description 10.200 Consumer Commercial $9,143,600 $6,766,600 3,416,800 15,700 purchase orders 1,691,500 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Horton Technology Chapter 24 Exam assignment take frame Divisional Income Statements For the Year Ended December 31, 2017 Operating income before support department allocations Support department allocations: Total support department allocations Consumer Division 000000000 Commercial Division 000000000

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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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, 20Y7, are as follows: Tech Services Department Purchasing Department Other corporate administrative expenses Total expense 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 divisions 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 $1,125,900 235,500 Tech Services 310 $1,946,400 computers 500 810 585,000 Line Item Description 1,793,500 Purchasing 5,500 purchase orders 10,200 15,700 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 Revenues $9,143,600 $6,766,600 Cost of goods sold 5,079,800 3,416,800 Operating expenses 1,691,500 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Horton Technology Chapter 24 Exam assignment take frame Divisional Income Statements For the Year Ended December 31, 20Y7 Operating income before support department allocations Support department allocations: Total support department allocations Consumer Commercial Division Division 0000 00 0000 Previous Next >
Transcribed Image Text: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, 20Y7, are as follows: Tech Services Department Purchasing Department Other corporate administrative expenses Total expense 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 divisions 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 $1,125,900 235,500 Tech Services 310 $1,946,400 computers 500 810 585,000 Line Item Description 1,793,500 Purchasing 5,500 purchase orders 10,200 15,700 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 Revenues $9,143,600 $6,766,600 Cost of goods sold 5,079,800 3,416,800 Operating expenses 1,691,500 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Horton Technology Chapter 24 Exam assignment take frame Divisional Income Statements For the Year Ended December 31, 20Y7 Operating income before support department allocations Support department allocations: Total support department allocations Consumer Commercial Division Division 0000 00 0000 Previous Next >
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