14. EX.24.07.ALGO (Algorithmic) 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: Tech Services Department 51,176,000 Purchasing Department 308,000 Other corporate administrative expenses 638,000 Total expense $2,122,000 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 430 computers 5,400 purchase orders Commercial Division 270 10.000 Total 700 computers 15,400 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 controllable by the divisions. The revenues, cost of goods sold, and operating coenses for the two divisions are as follows: Consumer Commercial Revenues $9,765,900 $7,574,000 Cost of goods sold 5,425,500 3,824,500 Operating expenses 1,915,600 1,893,300 Prepare 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 Consumer Division Commercial Division Operating income before support department allocations Support department allocations: Total support department allocations Ini