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Prepare the divisional income statements for the two divisions. Do not round your interim calculations Horton Technology has two nsumer and Commercial, e expenses tor
Prepare the divisional income statements for the two divisions. Do not round your interim calculations
Horton Technology has two nsumer and Commercial, e expenses tor the year ended Tech Services Department Purchasing Department divisions, Other corporate administrative expenses Total expense and two corpo support departments h Services and rchasvng. e corpo cember , are as $777,200 430,000 519,000 The other corporate administrative expenses include offcers' 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 Zurchasing 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: Consumer Division Commercial Division Total Tech Services 410 computers 260 670 computers Purchasing 6,000 purchase orders 11,200 17,200 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: Revenues Cost of goods sold Operating expenses Consumer 1,443,200 Commercia I 3,403,100 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, 20Y7 Consumer Division Line Item Description Operating income before support department allocations Support department allocations: Total support department allocations Commercial Division
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