Chapter 24 Homework eBook Show Me How 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 Purchasing Department Other corporate administrative expenses $888,300 507,000 600,000 Total expense $1,995,300 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 390 computers Consumer Division Commercial Division 5,900 purchase orders 11,000 240 Total 630 computers 16,900 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 expenses for the two divisions are as follows: Consumer Commercial $8,548,400 $7,745,900 Revenues Cost of goods sold 4,749,100 3,911,300 1.936.300 Operating expenses 1.676.800 Check My Work Previous Next Revenues $8,548,400 $7,745,900 Cost of goods sold 4,749,100 3,911,300 Operating expenses 1,676,800 1,936,300 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: 10000 DOOR Total support department allocations $ $ Check My Work Previous Next Assignment Score: 0.0% Save and Exit Submit Assignment for Grading