Divisional Income Statements The following data were summarized from the accounting records for Ruiz Industries Inc. for the year ended November 30, 20Y8: Cost of goods sold: Support department allocations: Commercial Division $313,460 Commercial Division $42,740 Residential Division 146,280 Residential Division 25,340 Administrative expenses: Sales: Commercial Division $56,990 Commercial Division $474,940 Residential Division 52,240 Residential Division 261,220 Prepare divisional income statements for Ruiz Industries Inc. Ruiz Industries Inc. Divisional Income Statements For the Year Ended November 30, 20Y8 Commercial Division Residential Division Sales Cost of goods sold Gross profit Administrative expenses Operating income before support department allocations Support department allocationsSupport Department Allocations The centralized computer technology department of Hardy Company has expenses of $148,000. The department has provided a total of 18,500 hours of service for the period. The Retail Division has used 8,325 hours of computer technology service during the period, and the Commercial Division has used 10,175 hours of computer technology service. How much should each division be allocated for computer technology department services? Do not round interim calculations. Retail Division '. 220,000 X Commercial Division '- 100,000 X Feedback 'CheckMyWork Divide the total expenses by the total number of hours of service. Then multiply this result by the number of hours used by each division during the period. Residual Income The operating income and the amount of Invested assets In each division of Conley Industries are as follows: Operating income Invested Assets Retail Division 330,200 $390,000 Commercial Division 64,000 400,000 [ntemet Division 96,600 420,000 Assume that management has established a 12% minimum acceptable return for invested assets. 3. Determine the residual income for each diViSion. Retail Division Commercial Division Internet Division > Operating income $70,200 $64,000 $96,600 Minimum acceptable operating income as a percent of invested assets I I l I l l Residual income $| l $l l g, l h. Which division has the most residual income? v