The following data pertain to Terrace Industries for the current year: District 1 District 2 Sales $300,000 $600,000 Cost of goods sold $120,000 $150,000 Selling expenses $55,000 $75,000 Purchase requisitions issued 35 65 Number of employees 7 13 Service department costs: Purchasing $70,000 Payroll Accounting 40,000 a. Allocate Purchasing Department costs according to the number of purchase requisitions issued for a division, and Payroll Accounting Department costs according to the number of employees in a division. District 1 District 2 Service department allocation rates: Purchasing Department service allocations Payroll Accounting service allocations Total service department allocations b. Determine the divisional income from operations for Districts 1 and 2. District 1 $ b. Determine the divisional income from operations for Districts 1 and 2. District 1 $ $ District 2