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Divisional income statements with support department allocations Horton Technology has two divisions Consumer and Commercial and two corporate support departments, Tech Services and Purchasing. The corporate expenses for the year ended December 31, 2017, are as follows: ACCT 102 Chapter 24 - Homework assignment take frame Tear Services Department Purchasing Department 292,000 457,000 Other corporate administrative expenses Total expense $1,519,500 The other corporate administrative expenses include officers' 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 Purchasing Department allocates costs to the divisi 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 Purchasing 5,100 purchase orders Revenues Cost of goods sold 3,746,900 Operating expenses 9,500 14,600 purchase orders computers 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: Consumer Commercial $6,744,400 $5,666,900 2,861,500 1,322,900 1,416,600

Divisional income statements with support department allocations Horton Technology has two divisions Consumer and Commercial and two corporate support departments, Tech Services and Purchasing. The corporate expenses for the year ended December 31, 2017, are as follows: ACCT 102 Chapter 24 - Homework assignment take frame Tear Services Department Purchasing Department 292,000 457,000 Other corporate administrative expenses Total expense $1,519,500 The other corporate administrative expenses include officers' 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 Purchasing Department allocates costs to the divisi 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 Purchasing 5,100 purchase orders Revenues Cost of goods sold 3,746,900 Operating expenses 9,500 14,600 purchase orders computers 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: Consumer Commercial $6,744,400 $5,666,900 2,861,500 1,322,900 1,416,600

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 7E: Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments,...
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Divisional income statements with support department allocations Horton Technology has two divisions. Consumer and Commercial and two corporate support departments, Tech Services and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: ACCT 102 Chapter 24 - Homework assignment take frame Teen Services Department 2770,000 292,000 Purchasing Department Other corporate administrative expenses Total expense The other corporate administrative expenses include officers' 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 Purchasing 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 $1,519,500 260 410 computers 670 457,000 Purchasing 5,100 purchase orders 1,322,900 9,500 14,600 purchase orders computers 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: Consumer Commercial $6,744,400 $5,666,900 2,861,500 Revenues Cost of goods sold 3,746,900 Operating expenses Prepare the divisional income statements for the two divisions. Do not round your interim calculations. 1,416,600
Transcribed Image Text:Divisional income statements with support department allocations Horton Technology has two divisions. Consumer and Commercial and two corporate support departments, Tech Services and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: ACCT 102 Chapter 24 - Homework assignment take frame Teen Services Department 2770,000 292,000 Purchasing Department Other corporate administrative expenses Total expense The other corporate administrative expenses include officers' 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 Purchasing 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 $1,519,500 260 410 computers 670 457,000 Purchasing 5,100 purchase orders 1,322,900 9,500 14,600 purchase orders computers 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: Consumer Commercial $6,744,400 $5,666,900 2,861,500 Revenues Cost of goods sold 3,746,900 Operating expenses Prepare the divisional income statements for the two divisions. Do not round your interim calculations. 1,416,600
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 Line Item Description Revenues Cost of goods sold Gross profit Operating expenses Operating income before support department allocations Support department allocations: Tech service department Purchasing department ✓ Total support department allocations Operating income ✓ Consumer Commercial Division Division AA
Transcribed Image Text: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 Line Item Description Revenues Cost of goods sold Gross profit Operating expenses Operating income before support department allocations Support department allocations: Tech service department Purchasing department ✓ Total support department allocations Operating income ✓ Consumer Commercial Division Division AA
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