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Help would be much appreciated! Thank you so much in advance! Divisional Income Statements with Service Department Charges Yozamba Technology has two divisions, Consumer and
Help would be much appreciated! Thank you so much in advance!
Divisional Income Statements with Service Department Charges Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 2047, are as follows: $516,000 89,600 Tech Support Department Purchasing Department Other corporate administrative expenses Total corporate expense 560,000 $1,165,600 The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges 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 Consumer Division Purchasing 1,960 purchase orders 3,640 375 computers 225 600 computers Commercial Division Total 5,600 purchase orders The service department charges of the Tech Support 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 $7,430,000 4,123,000 Cost of goods sold Operating expenses $6,184,000 3,125,000 1,546,000 1,465,000 Prepare the divisional income statements for the two divisions. Round your interim calculations to three decimal places, if required. Yozamba Technology Divisional Income Statements For the Year Ended December 31, 2047 Consumer Division Commercial Division $ OOOOOO $ $ Income from operations before service department charges Service department charges: $ $ Total service department charges $Step by Step Solution
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