1)PLEASE ANSWERED WITH IN THE FORMAT BY PROVIDING FORMULA IN DETAILS2)PLEASE PROVIDE ANSWER IN TEXT Divisional income statement with support department allocationsHorton Technology has two divisions, Consumer and Commercial, and two corporate support departments, tech services and purchasing.The corporate expenses for the year ended December 21, 20Y7, are as follows: Tech Services DepartmentPurchasing DepartmentOther corporate administrative expensesTotal expense$1,925,000The other corporate administrative expenses include officers' salaries and otdepartment, and the Purchasing Department allocates costs to the divisionsPurchasing$966,000380,000579,000Tech ServicesConsumer DivisionCommercial DivisionTotal430 computers5,300 purchase c2709,900700 computers15,200 purchase cThe support department allocations of the Tech Services Department and therevenues, cost of goods sold, and operating expenses for the two divisions aConsumerCommercial$8,536,7004,742,6001,674,500Revenues$7,185,900Cost of goods sold3,628,500Operating expenses1,796,300Prepare the divisional income statements for the two divisions. Do not rounHorton Technology The other corporate administrative expenses include officers salaries and other expenses required by the corporation. The Tech Services Department alates outs to the divisions bed in the number of comparinthedepartment, and the Purchasing Department allocates casts to the divisions based on the number of purchase orders for each department. The services ustas flamePurchasingConsumer DivisionCommercial Division430 computers2703,300 purchase orders9,900200 computers15,200 purchase ordersThe support department allocations of the Tech Services Department and the Purchasing Department are considered controlable by the divisions Corporate abirevenues, cost of goods sold, and operating expenses for the two divisions are as flowsConsumerCommercial$8,536,7004,242,6001674,500TotalTech ServicesRevenues17,165,900Cost of goods sold3.628,500Operating expenses1,795,300Prepare the disional income statements for the two divisions. Do not round your interim calculations.Horton TechnologyDivisional Income StatementsFor the Year Ended December 31, 2017Line Item DescriptionOperating income before support department allocationsSupport department allocationsTotal support department allocationsConsumer CommercialDivisise Division000000000QOOOO OOOONotTea Grad

Income Statement: It is a part of financial statement of a company in which revenue and expenses are…

ech Services Department $966,000 urchasing Department 380,000 ther corporate administrative expenses 579,000 otal expense $1,925,000 he other corporate administrative expenses include officers' salaries and o epartment, and the Purchasing Department allocates costs to the divisions onsumer Division Commercial Division Total Tech Services 430 computers 270 700 computers Purchasing 5,300 purchase 9,900 15,200 purchase he support department allocations of the Tech Services Department and the evenues, cost of goods sold, and operating expenses for the two divisions Consumer Commercial $8,536,700 $7,185,900 4,742,600 3,628,500 1,674,500 1,796,300 evenues Cost of goods sold Operating expenses repare the divisional income statements for the two divisions. Do not roun

ech Services Department $966,000 urchasing Department 380,000 ther corporate administrative expenses 579,000 otal expense $1,925,000 he other corporate administrative expenses include officers' salaries and o epartment, and the Purchasing Department allocates costs to the divisions onsumer Division Commercial Division Total Tech Services 430 computers 270 700 computers Purchasing 5,300 purchase 9,900 15,200 purchase he support department allocations of the Tech Services Department and the evenues, cost of goods sold, and operating expenses for the two divisions Consumer Commercial $8,536,700 $7,185,900 4,742,600 3,628,500 1,674,500 1,796,300 evenues Cost of goods sold Operating expenses repare the divisional income statements for the two divisions. Do not roun

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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Service department charges In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of 64,560, and the Purchasing Department had expenses of 40,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: A. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. B. Using the cost driver information in (A), determine the annual amount of payroll and purchasing costs allocated to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. C. Why does the Residential Division have a larger support department allocation than the other two divisions, even though its sales are lower?
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 $905,200 Purchasing Department 380,000 Other corporate administrative expenses 553,000 Total expense $1,838,200 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 450 computers 5,300 purchase orders Commercial Division 280 9,900 Total 730 computers 15,200 purchase…
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 $773,500 Purchasing Department 308,000 Other corporate administrative expenses 465,000 Total expense $1,546,500 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 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 400 computers 5,400 purchase orders Commercial Division 250 10,000 Total 650 computers 15,400 purchase…
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 $786,600 Purchasing Department 338,000 Other corporate administrative expenses 484,000 Total corporate expense $1,608,600 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 350 computers 5,900 purchase orders Commercial Division 220 11,000     Total 570 computers…
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 $786,600 Purchasing Department 338,000 Other corporate administrative expenses 484,000 Total corporate expense $1,608,600 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 350 computers 5,900 purchase orders Commercial Division 220 11,000     Total 570 computers…
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 $1,170,000 Purchasing Department 450,000 Other corporate administrative expenses 800,000 Total expense $2,420,000 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 1,100 computers 4,000 purchase orders Commercial Division 700 8,000     Total 1,800 computers 12,000…
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 $1,170,000 Purchasing Department 450,000 Other corporate administrative expenses 800,000 Total expense $2,420,000 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 1,100 computers 4,000 purchase orders Commercial Division 700 8,000 Total 1,800 computers 12,000…
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 $1,170,000 Purchasing Department 450,000 Other corporate administrative expenses 800,000 Total expense $2,420,000 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 1,100 computers 4,000 purchase orders Commercial Division 700 8,000 Total 1,800 computers 12,000…
Grael 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 $ 560,700 Purchasing Department 89,600 Other corporate administrative expenses 585,000 Total corporate expense $1,235,300 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 320 computers 1,940 purchase orders Commercial Division 310 3,660 Total 630 computers 5,600 purchase orders The service department charges of…
Grael 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 $1,130,400 Purchasing Department 231,000 Other corporate administrative expenses 585,000 Total corporate expense $1,946,400 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 440 computers 5,400 purchase orders Commercial Division 280 10,000 Total 720 computers 15,400 purchase orders The service department charges of the…
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 $567,000 Purchasing Department 96,900 Other corporate administrative expenses 590,000 Total corporate expense $1,253,900 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 360 computers 1,990 purchase orders Commercial Division 270 3,710 Total 630 computers 5,700 purchase orders The service department charges of…
Grael Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate costs for the year ended December 31, 20Y7, are as follows: Tech Support Department $336,000 Purchasing Department 67,500 Other corporate administrative costs 448,000 Total corporate costs $851,500 The other corporate administrative costs include officers’ salaries and miscellaneous smaller costs required by the corporation. The Tech Support Department allocates the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department allocates 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 300 computers 1,800 purchase orders Commercial Division 180 2,700 Total 480 computers 4,500 purchase orders The service department allocations…