Divisional income statements with support department allocations 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 $31,20$ Y$7$

Consumer

Division

Line Item Description

Operating income before support department allocations

Support department allocations:

Total support department allocations

Commercial

Division

$

$

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 $31,20$Y$7,$ are as follows:

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:

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: