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Homework, Chapter 24 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 $992,000 Purchasing Department 507,000 Other corporate administrative expenses 645,000 Total expense $2,144,000 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: Tech Services Purchasing Consumer Division 380 computers 5,900 purchase orders Commercial Division 240 11,000 Total 620 computers 16,900 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 Check My Work 5 more Check My Work uses remaining Previous Next Homework, Chapter 24 Consumer Commercial Revenues $9,231,800 $8,274,300 Cost of goods sold 5,128,800 4,178,100 Operating expenses 1,810,800 2,068,400 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, 2017 Consumer Commercial Division Division Operating income before support department allocations Support department allocations: Total support department allocations

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