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Divisional Income Statements with Service Department Charges Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The
Divisional Income Statements with Service Department Charges Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows Tech Support Department $999,100 320,000 Other corporate administrative expenses 563,000 Total corporate expense The other corporate administrative expenses indude officers salaries and other expenses required by the corporation The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows $1,872,100 Tech Support Purchasing Consumer Division 390 computers 5,600 purchase orders Commercial Division 240 10,400 630 computers 16,000 purchase orders Total The service department charges of the Tech Support 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 $9,518,300 6,776,700 Cost of goods sold4,732,400 3,421,900 Operating expenses 1,670,900 1,694,000 Prepare the divisional income statements for the two divisions. Do not round your interim calculations Division l Division Income from operations before service department charges Service department charges Total service department charges
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