=+The service department charges ofthe Tech Support Department and the Accounts Payable Department are considered controllable by
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=+The service department charges ofthe Tech Support Department and the Accounts Payable Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operat¬
ing expenses for the two divisions are as follows:
Commercial Consumer Revenues $5,600,000 $4,760,000 Cost of goods sold 2,940,000 2,240,000 Operating expenses 1,050,000 980,000 Prepare the divisional income statements for the two divisions.
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