Divisional Income Statements with Service Department Charges Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: Tech Support Department $1,201,200 Purchasing Department 231,000 Other corporate administrative expenses 616,000 Total corporate expense $2,048,200 The other corporate administrative expenses include officers’ salaries and other expenses 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: Tech Support Purchasing Consumer Division 480 computers 5,400 purchase orders Commercial Division 300 10,000 Total 780 computers 15,400 purchase orders The service department charges of the Tech Support 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 $9,646,000 $7,092,200 Cost of goods sold 5,358,900 3,581,200 Operating expenses 1,892,100 1,772,900 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Yozamba TechnologyDivisional Income StatementsFor the Year Ended December 31, 20Y7 Consumer Division Commercial Division $- Select - $- Select - - Select - - Select - $- Select - $- Select - - Select - - Select - Income from operations before service department charges $fill in the blank 13 $fill in the blank 14 Service department charges: blank $- Select - blank $- Select - blank - Select - blank - Select - Total service department charges blank $fill in the blank 21 blank $fill in the blank 22 $- Select - $- Select -

Divisional Income Statements with Service Department Charges Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: Tech Support Department $1,201,200 Purchasing Department 231,000 Other corporate administrative expenses 616,000 Total corporate expense $2,048,200 The other corporate administrative expenses include officers’ salaries and other expenses 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: Tech Support Purchasing Consumer Division 480 computers 5,400 purchase orders Commercial Division 300 10,000 Total 780 computers 15,400 purchase orders The service department charges of the Tech Support 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 $9,646,000 $7,092,200 Cost of goods sold 5,358,900 3,581,200 Operating expenses 1,892,100 1,772,900 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Yozamba TechnologyDivisional Income StatementsFor the Year Ended December 31, 20Y7 Consumer Division Commercial Division $- Select - $- Select - - Select - - Select - $- Select - $- Select - - Select - - Select - Income from operations before service department charges $fill in the blank 13 $fill in the blank 14 Service department charges: blank $- Select - blank $- Select - blank - Select - blank - Select - Total service department charges blank $fill in the blank 21 blank $fill in the blank 22 $- Select - $- Select -

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 Service Department Charges

Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows:

Tech Support Department	$1,201,200
Purchasing Department	231,000
Other corporate administrative expenses	616,000
Total corporate expense	$2,048,200

The other corporate administrative expenses include officers’ salaries and other expenses 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:

	Tech Support	Purchasing
Consumer Division	480	computers	5,400	purchase orders
Commercial Division	300		10,000
Total	780	computers	15,400	purchase orders

The service department charges of the Tech Support 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	$9,646,000		$7,092,200
Cost of goods sold	5,358,900		3,581,200
Operating expenses	1,892,100		1,772,900

Prepare the divisional income statements for the two divisions. Do not round your interim calculations.

Yozamba TechnologyDivisional Income StatementsFor the Year Ended December 31, 20Y7

		Consumer Division		Commercial Division
		$- Select -		$- Select -
		- Select -		- Select -
		$- Select -		$- Select -
		- Select -		- Select -
Income from operations before service department charges		$fill in the blank 13		$fill in the blank 14
Service department charges:
	blank	$- Select -	blank	$- Select -
	blank	- Select -	blank	- Select -
Total service department charges	blank	$fill in the blank 21	blank	$fill in the blank 22
		$- Select -		$- Select -

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