Divisional income statements with support department allocationsHorton 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 DepartmentPurchasing DepartmentOther corporate administrative expenses$2,132,400The 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 ServicesPurchasingConsumer Division480 computers5,800 purchase ordersCommercial Division30010,8004780 computers16,600 purchase ordersThe 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:ConsumerCommercial$9,495,2005,275,1001,862,500Total expenseTotalRevenuesCost of goods sold$1,076,400415,000641,000Line Item Description$7,926,700Operating expenses1,981,500Prepare the divisional income statements for the two divisions. Do not round your interim calculations.Horton Technology4,002,600Divisional Income StatementsFor the Year Ended December 31, 20Y7Total support department allocationsOperating income before support department allocationsSupport department allocations:Consumer CommercialDivisionDivision10000

It is a fundamental accounting practice that helps organizations determine the true cost of their…

repare the divisional 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 Division Division gogo goog gooodl godo

repare the divisional 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 Division Division gogo goog gooodl godo

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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Cost Department Allocations In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $34,760, and the Purchasing Department had expenses of $15,660 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Sales Number of employees: Weekly payroll (52 weeks per year) Monthly payroll Number of purchase requisitions per year Number of payroll checks: Weekly payroll x 52 Monthly payroll x 12 Total Residential $ 327,000 Support department allocations: Payroll Department Purchasing Department 175 32 2,300 Total Commercial $ 434,000 Required: a. Determine the total amount of payroll checks and purchase requisitions processed per year by the…
Using the data below for the Ace Guitar Company: A Region B Region Sales $521,500 $968,500 Cost of goods sold 198,200 368,000 Selling expenses 125,200 232,400 Service department expenses Purchasing $250,300 Payroll accounting 166,900 Allocate service department expenses proportional to the sales of each region. Determine the divisional income from operations for the A and B regions. For interim calculations, round percentages to one decimal place. A Region $ B Region $
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Exercise 14-27 (Algo) Computing Divisional Income: Incomplete Information and Financial Ratios (LO 14- 1) The following partial financial information (in thousands of dollars) is available for Thole, Incorporated: Corporate overhead costs at Thole are allocated to divisions based on relative sales. Required: a. Complete the income statements for both divisions and the corporation as a whole. Note: Enter your answers in thousands. Enter all values as positive value. Round your answers to 1 decimal place. Sales Cost of sales Gross margin Selling, General and Administrative Allocated corporate costs Operating income Tax expense (@20%) After-tax income Gross margin percentage Operating margin Profit margin Pacific 20.0 (Thousands of Dollars) Southern 40.00% 20.00 % 16.00 % 50.00 % 36.00 % 28.80 % Total 100.0 $1,016.8 48.00 % 32.80 % 26.24 %
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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 $1,158,300 480,000 Purchasing Department Other corporate administrative expenses 704,000 $2,342,300 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 Tech Services 500 computers 310 810 computers Purchasing 5,600 purchase orders 10,400 16,000 purchase orders The support department…
Question Content Area Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for each division for the year ended December 31 are as follows: Line Item Description Division A Division B Revenues $190,000 $125,500 Operating expenses 112,500 92,750 Support department allocations 29,500 12,625 Invested assets 225,000 99,000 Question Content Area a. Prepare condensed income statements for the past year for each division. Bentz Co.Divisional Income StatementsFor the Year Ended December 31 Line Item Description Division A Division B $- Select - $- Select - - Select - - Select - $- Select - $- Select - - Select - - Select - Operating income $Operating income $Operating income Question Content Area b. Using the DuPont formula, determine the profit margin, investment turnover, and return on investment (ROI) for each division. Round the profit margin percentage to two decimal places, the…