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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: Tech Services Department $1,158,300 480,000 Purchasing Department Other corporate administrative expenses 704,000 $2,342,300 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 Purchasing 5,600 purchase orders 10,400 16,000 purchase orders 500 computers 310 810 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 Revenues $10,384,400 $8,752,900 Cost of goods sold 5,769,100 4,419,800 Operating expenses 2,036,900 2,188,000 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

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: Tech Services Department $1,158,300 480,000 Purchasing Department Other corporate administrative expenses 704,000 $2,342,300 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 Purchasing 5,600 purchase orders 10,400 16,000 purchase orders 500 computers 310 810 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 Revenues $10,384,400 $8,752,900 Cost of goods sold 5,769,100 4,419,800 Operating expenses 2,036,900 2,188,000 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

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: Tech Services Department $1,158,300 480,000 Purchasing Department Other corporate administrative expenses 704,000 $2,342,300 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 500 computers 310 810 computers Purchasing 5,600 purchase orders 10,400 16,000 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: Consumer Commercial Revenues $10,384,400 $8,752,900 Cost of goods sold 5,769,100 4,419,800 Operating expenses 2,036,900 2,188,000 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
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: Tech Services Department $1,158,300 480,000 Purchasing Department Other corporate administrative expenses 704,000 $2,342,300 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 500 computers 310 810 computers Purchasing 5,600 purchase orders 10,400 16,000 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: Consumer Commercial Revenues $10,384,400 $8,752,900 Cost of goods sold 5,769,100 4,419,800 Operating expenses 2,036,900 2,188,000 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
Operating expenses 2,188,000 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Horton Technology 2,036,900 Divisional Income Statements For the Year Ended December 31, 20Y7 Line Item Description Operating income before support department allocations Support department allocations: Total support department allocations Consumer Commercial Division Division S
Transcribed Image Text:Operating expenses 2,188,000 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Horton Technology 2,036,900 Divisional Income Statements For the Year Ended December 31, 20Y7 Line Item Description Operating income before support department allocations Support department allocations: Total support department allocations Consumer Commercial Division Division S
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