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Divisional Income Statements with Service Department Allocations Grael Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate costs for the your ended December 31, 2017, are as follows: Tech Support Department $1,066,000 Purchasing Department 507,000 Other corporate administrative costs 676,000 Total corporate costs $2,249,000 The other corporate administrative costs indude officers' salaries and miscellaneous smaller costs required by the corporation. The Tech Support Department allocates the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department allocates divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows: Tech Support Purchasing Consumer Division 400 computers 5,900 purchase orders Commercial Division 250 11,000 Total 650 computers 16,900 purchase orders The service department allocations of the Tech Support Department and the Purchasing Department are considered controllable by the divisions Corporate administrative costs 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 $9,796,500 $8,575,300 Cost of goods sold 5,442,500 4,330,100 Operating expenses 1,921,600 2,143,600 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. GRAEL TECHNOLOGY Divisional Income Statements For the Year Ended December 31, 2017 Consumer Commerdal Revenues $9,795,500 $8,575,300 Cost of goods sold 5,442,500 4,330,100 Operating expenses 1.921,600 2,143,600 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. GRAEL TECHNOLOGY Divisional Income Statements For the Year Ended December 31, 2017 Consumer Division Revenues TO Cost of goods sold 54500 Commercial Division 75.00 4.330,100 Gross profit USLOO 45.2007 Operating expenses 121.00 210.00 23.400 2.101.600 Income from operations before service department allocations Less service department cost allocations: Tech support department 655.999X 09. X Purchasing department 251.370 X 32.99X 507.000 X 597.000 X GES 1.525.01 X 169.02 X