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b. Delen OB].3 ercial income rations, 5X 8-7 Divisional income statements with service department charges Yozamba Technology has two divisions, Consumer and Commercial, and two
b. Delen OB].3 ercial income rations, 5X 8-7 Divisional income statements with service department charges Yozamba Technology has two divisions, Consumer and Commercial, and two corne service departments, Tech Support and Purchasing. The corporate expenses for the vi ended December 31, 2016, are as follows: $ 516,000 Tech Support Department 89,600 Purchasing Department 560,000 Other corporate administrative expenses Total corporate expense $1,165,600 The other corporate administrative expenses include officers salaries and other ex. penses 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: Consumer Division Commercial Division Total Tech Support 375 computers 225 600 computers Purchasing 1,960 purchase orders 3,640 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 e penses are not considered controllable by the divisions. The revenues, cost of goods solo and operating expenses for the two divisions are as follows: Revenues Cost of goods sold Operating expenses Consumer $7,430,000 4,123,000 1,465,000 Commercial $6,184,000 3,125,000 1,546,000 Prepare the divisional income statements for the two divisions
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