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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 Purchasing Department Other corporate administrative expenses $997,100 219,000 523,000 Total expense $1,739,100 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 360 computers 5,100 purchase orders Commercial Division 230 9,500 Total 590 computers 14,600 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 $8,054,600 $6,155,700 Cost of goods sold 4,474,800 3,108,300 Operating expenses 1,579,900 1,538,800 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, 20YTAN Consumer Division Commercial Division Revenues Cost of goods sold Gross profit Operating expenses Operating income before support department allocations Support department allocations: Tech service department Purchasing department on OOOO ID oooo Total support department allocations Operating income

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