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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

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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 $1,178,000 Purchasing Department 435,000 Other corporate administrative expenses 694,000 Total expense $2,307,000 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 Consumer Division 470 computers 6,100 purchase orders Commercial Division 290 11,300 Total 760 computers 17.400 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 Revenues $10,360,800 $8,482,800 Cost of goods sold 5,756,000 4,283,400 Operating expenses 2,032,300 2,120,500 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Horton Technology The support department allocations of the Tech Services Department and the Purchasing Department are considered controllable by the divisions. Corporate administrati 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 $10,360,800 $8,482,800 Cost of goods sold 5,756,000 4,283,400 Operating expenses 2,032,300 2,120,500 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 Gross profit Cash Operating income Operating expenses fefore support department allocations Revenues llocations: DJ DO. Total support department allocations Diuo

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