Corrections to Service Department Allocations for a Service Company Wild Sun Airlines Inc. has two divisions organized as profit centers, the Passenger Division and the Cargo Division. The following divisional income statements were prepared: The service department allocations rate for the service department costs was based on revenues. Because the revenues of the two divisions were the same, the service department allocations to each division were also the same. The following additional information is available: The service department allocations rate for the service department costs was based on revenues. Because the revenues of the two divisions were the same, the service department allocations to each division were also the same. The following additional information is available: a. Does the income from operations for the two divisions accurately measure performance? Explain. The reported income from operations accurately measure performance because the service department allocations are based on . Revenues associated with the profit center manager's use of the service department services. Feedback Check My Work Correct b. Correct the divisional income statements, using the cost drivers provided in revising the service department cost allocations. If an amount box does not require an entry, leave it blank. Do not round your interim calculations. D. Correct the divisional income statements, using the cost drivers provided in revising the service department cost allocations. If an amount box does not require an entry, leave it blank. Do not round your interim calculations. Feedback Check My Work b. Consider the relationship of the departments. Look at how revenues are associated with the profit center