Divisional Income Statements with Support Department Allocations i 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 $1,064,700 372,500 618,000 Total expense $2,055,200 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: Purchasing Consumer Division Commercial Division Total Tech Services 390 computers 240 5,200 purchase orders 9,700 630 computers 14,900 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 $9,280,100 $7.510.400 Cost of goods sold 5.155.600 3,792,400