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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, 2017, are as follows: Tech Support Department $938, 100 Purchasing Department 516,000 Other corporate administrative expenses 625,000 Total corporate expense $2,079,100 The other corporate administrative expenses include 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 divisirs for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows: Tech Support Purchasing Consumer Division 360 computers 6,000 purchase orders Commercial Division 230 11,200 Total 590 computers 17,200 purchase orders 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: Consumer Commercial Revenues $8,848,400 $8,131,500 Caet of inade en 4 915 en 410600 Consumer Commercial Revenues $8,848,400 $8,131,500 Cost of goods sold 4,915,800 4,106,000 Operating expenses 1,735,600 2,032,700 Prepare the divisional Income statements for the two divisions. Do not round your interim calculations. Yozamba Technology Divisional Income Statements For the Year Ended December 31, 2017 Consumer Division Commercial Division Income from operations before service department charges Service department charges: Q100 Total service department charges
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