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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, 2017, are as follows: Tech Support Department $1,287,900 Purchasing Department 244,500 Other corporate administrative expenses 659,000 $2,191,400 Total corporate expense 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 500 computers 310 810 computers Purchasing 5,700 purchase orders 10,600 16,300 purchase orders Consumer Division Commercial Division Total 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, cos of goods sold, and operating expenses for the two divisions are as follows: Commercial Consumer $10,355,200 Revenues Cost of goods sold 5,752,900 2,031,200 Operating expenses Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Yozamba Technology $7,554,400 3,814,600 1,888,400 Divisional Income Statements For the Year Ended December 31, 20Y7 Consumer Division Commercial Division

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, 2017, are as follows: Tech Support Department $1,287,900 Purchasing Department 244,500 Other corporate administrative expenses 659,000 $2,191,400 Total corporate expense 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 500 computers 310 810 computers Purchasing 5,700 purchase orders 10,600 16,300 purchase orders Consumer Division Commercial Division Total 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, cos of goods sold, and operating expenses for the two divisions are as follows: Commercial Consumer $10,355,200 Revenues Cost of goods sold 5,752,900 2,031,200 Operating expenses Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Yozamba Technology $7,554,400 3,814,600 1,888,400 Divisional Income Statements For the Year Ended December 31, 20Y7 Consumer Division Commercial Division

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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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: Commercial Consumer Revenues $10,355,200 $7,554,400 Cost of goods sold 5,752,900 3,814,600 Operating expenses 2,031,200 1,888,400 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Yozamba Technology Divisional Income Statements For the Year Ended December 31, 20Y7 Income from operations before service department charges Service department charges: Total service department charges Consumer Division Commercial Division 10000 100000
Transcribed Image Text: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: Commercial Consumer Revenues $10,355,200 $7,554,400 Cost of goods sold 5,752,900 3,814,600 Operating expenses 2,031,200 1,888,400 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Yozamba Technology Divisional Income Statements For the Year Ended December 31, 20Y7 Income from operations before service department charges Service department charges: Total service department charges Consumer Division Commercial Division 10000 100000
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 Purchasing Department Other corporate administrative expenses Total corporate expense 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 Consumer Division Commercial Division Total 500 computers 310 810 computers 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: Commercial Consumer $10,355,200 5,752,900 2,031,200 Purchasing 5,700 purchase orders 10,600 16,300 purchase orders $1,287,900 244,500 659,000 $2,191,400 Revenues Cost of goods sold Operating expenses Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Yozamba Technology Divisional Income Statements For the Year Ended December 31, 20Y7 $ $7,554,400 3,814,600 1,888,400 Consumer Division Commercial Division Income from operations before service department charges $
Transcribed Image Text: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 Purchasing Department Other corporate administrative expenses Total corporate expense 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 Consumer Division Commercial Division Total 500 computers 310 810 computers 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: Commercial Consumer $10,355,200 5,752,900 2,031,200 Purchasing 5,700 purchase orders 10,600 16,300 purchase orders $1,287,900 244,500 659,000 $2,191,400 Revenues Cost of goods sold Operating expenses Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Yozamba Technology Divisional Income Statements For the Year Ended December 31, 20Y7 $ $7,554,400 3,814,600 1,888,400 Consumer Division Commercial Division Income from operations before service department charges $
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