Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 Purchasing Department $1,372,800 228,000 Other corporate administrative expenses 68,000 Total expense 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 Tech Services Purchasing 480 computers Consumer Division Commercial Division 5,300 purchase orders 9.900 Total 780 puters 15,200 purchase orders The support department locations 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: Reven Cost of goods sold Operating expenses Consumer Commercial $10.07.200 $7.839.500 6,039,000 3,958,600 2,032,200 1,959,700 comestnants for the twe n s. De mot round your interim Horton Technology Divisional Income Statements For the Year Ended December 11, 2012 Prepare the division Tech Services Purchasing 480 computers 5,300 purchase orders Consumer Division Commercial Division Total 300 9,900 15.200 purchase orders 780 computers 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 $10,870,200 $7,839,600 Cost of goods sold 6,039,000 3,958,600 Operating expenses 2,132,200 1,959,700 Prepare the di s tincome 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 C alvin CoM Operating income before woordermentation Support e n cations Tech service department Purchasing department

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Continuity Management Audit A Complete Guide

Authors: Gerardus Blokdyk

2019 Edition

0655845860, 978-0655845867

More Books

Students also viewed these Accounting questions

Question

Are my points each supported by at least two subpoints?

Answered: 1 week ago