a. Deteriile b. Determine the charges to the O OBJ.3 ercial, and two corporate s with service department charges EX 24-7 Divisiona Yozamba Technology has

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a. Deteriile b. Determine the charges to the O OBJ.3 ercial, and two corporate s with service department charges EX 24-7 Divisiona Yozamba Technology has ended December 31, 2016, are as follows: l income statement two divisions, Consumer and Comm year port and Purchasing. The corporate expenses fo ome Tech Support Department Purchasing Department Other corporate administrative expenses Total corporate expense $ 516,000 89,600 560,000 $1,165,600 The other corporate administrative expenses include officers' salaries and o penses required by the corporation. The Tech Support Department charges the divisicx for services rendered, based on the number of computers in the department, Purchasing Department charges divisions for services, based on the number of orders for each department. The usage of service by the two divisions is as f other ex- purchase llows: Purchasing 1,960 purchase orders 3,640 5,600 purchase orders Tech Support 375 computers 600 computers The service department charges of the Tech Support Department and the Purchasi Consumer Division Commercial Division 225 Total Department are considered controllable by the divisions. Corporate administrative penses are not considered controllable by the divisions. The revenues, cost of goods s and operating expenses for the two divisions are as follows: Revenues Cost of goods sold Operating expenses Consumer $7,430,000 4,123,000 Commercial $6,184,000 3,125,000 1,546,000 1,465,000 Prepare the divisional income statements for the two divisions