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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 comp 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: Tech Services Purchasing Consumer Division Commercial Division Total 5,800 purchase orders 10,800 16,600 purchase orders 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 controllal the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows: 440 computers 280 720 computers Revenues Cost of goods sold Operating expenses $842,400 498,000 576,000 $1,916,400 Consumer $8,100,500 4,500,300 1.588.900 Commercial $7,550,800 3,812,800 1.887.500

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 comp 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: Tech Services Purchasing Consumer Division Commercial Division Total 5,800 purchase orders 10,800 16,600 purchase orders 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 controllal the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows: 440 computers 280 720 computers Revenues Cost of goods sold Operating expenses $842,400 498,000 576,000 $1,916,400 Consumer $8,100,500 4,500,300 1.588.900 Commercial $7,550,800 3,812,800 1.887.500

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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Prepare the divisional Income statements for the two divisions. Do not round your interim calculations. Horton Technology Line Item Description Revenues ✓ Cost of goods sold Gross profit Divisional Income Statements For the Year Ended December 31, 2017 ✓ Operating Income ✓ Operating expenses Operating income before support department allocations $ Support department allocations: Tech service department ✓ Purchasing department Total support department allocations ✓ Consumer Commercial Division Division good gogg 10000 100000
Transcribed Image Text:Prepare the divisional Income statements for the two divisions. Do not round your interim calculations. Horton Technology Line Item Description Revenues ✓ Cost of goods sold Gross profit Divisional Income Statements For the Year Ended December 31, 2017 ✓ Operating Income ✓ Operating expenses Operating income before support department allocations $ Support department allocations: Tech service department ✓ Purchasing department Total support department allocations ✓ Consumer Commercial Division Division good gogg 10000 100000
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, 20Y7, are as follows: Tech Services Department Purchasing Department Other corporate administrative expenses Total expense $1,916,400 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: Tech Services Purchasing Consumer Division Commercial Division Total $842,400 498,000 576,000 440 computers 280 Revenues Cost of goods sold Operating expenses 5,800 purchase orders 10,800 16,600 purchase orders 720 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 $8,100,500 4,500,300 1,588,900 Commercial $7,550,800 3,812,800 1,887,500
Transcribed Image Text: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, 20Y7, are as follows: Tech Services Department Purchasing Department Other corporate administrative expenses Total expense $1,916,400 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: Tech Services Purchasing Consumer Division Commercial Division Total $842,400 498,000 576,000 440 computers 280 Revenues Cost of goods sold Operating expenses 5,800 purchase orders 10,800 16,600 purchase orders 720 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 $8,100,500 4,500,300 1,588,900 Commercial $7,550,800 3,812,800 1,887,500
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