etlook Show Me How Priem 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 $1,000,000 Purchasing Department 223,500 Other corporate administrative expenses 564,000 Total expense $1,875,500 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 hased on the number of purchase orders for each department. The services used by the two divisions are as follows Tech Services Purchasing Consumer Division 490 computers 5,200 purchase orders Commercial Division 310 9,700 Total 800 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 $8,754,100 $6,571,900 Cost of goods sold 4,863,400 3,318,500 Operating expenses 1,717,100 1,642,800 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Horton Technology Check My Work Sad Submit Assignment for Grading ation) eBook Show Me How Print item Operating expenses 1,717,100 1,642,800 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, 2007 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 Total support department allocations Operating Income Feedback Check My Work Subtract the service department charges for a division from that division's income from operations before such charges to determine income from operations Previous Next > Check My Work