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 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 $7,410,000 $6,183,000 Cost of goods sold 4,124,000 3,119,000 Operating expenses 1,453,000 1,542,500 Prepare the divisional income statements for the two divisions. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. “Less” or “Plus” and colons will automatically appear if it is required. Be sure to complete the statement heading. Divisional Income Statements 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 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 $7,410,000 $6,183,000 Cost of goods sold 4,124,000 3,119,000 Operating expenses 1,453,000 1,542,500 Prepare the divisional income statements for the two divisions. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. “Less” or “Plus” and colons will automatically appear if it is required. Be sure to complete the statement heading. Labels and Amount Descriptions Prepare the divisional income statements for the two divisions. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. “Less” or “Plus” and colons will automatically appear if it is required. Be sure to complete the statement heading. GRAEL TECHNOLOGY Divisional Income Statements 1 Consumer Division Commercial Division 2 3 4 5 6 7 8 9 10 Total service department charges 11 Income from operations Labels For the Year Ended December 31, 20Y7 For the Month Ended December 31, 20Y7 Service department charges Amount Descriptions Advertising Department Cost of goods sold Gross profit Income from operations Income from operations before service department charges Operating expenses Purchasing Department Revenues Selling expenses Tech Support Department Divisional Income Statements

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 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 $7,410,000 $6,183,000 Cost of goods sold 4,124,000 3,119,000 Operating expenses 1,453,000 1,542,500 Prepare the divisional income statements for the two divisions. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. “Less” or “Plus” and colons will automatically appear if it is required. Be sure to complete the statement heading. Divisional Income Statements 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 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 $7,410,000 $6,183,000 Cost of goods sold 4,124,000 3,119,000 Operating expenses 1,453,000 1,542,500 Prepare the divisional income statements for the two divisions. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. “Less” or “Plus” and colons will automatically appear if it is required. Be sure to complete the statement heading. Labels and Amount Descriptions Prepare the divisional income statements for the two divisions. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. “Less” or “Plus” and colons will automatically appear if it is required. Be sure to complete the statement heading. GRAEL TECHNOLOGY Divisional Income Statements 1 Consumer Division Commercial Division 2 3 4 5 6 7 8 9 10 Total service department charges 11 Income from operations Labels For the Year Ended December 31, 20Y7 For the Month Ended December 31, 20Y7 Service department charges Amount Descriptions Advertising Department Cost of goods sold Gross profit Income from operations Income from operations before service department charges Operating expenses Purchasing Department Revenues Selling expenses Tech Support Department Divisional Income Statements

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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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 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	$7,410,000	$6,183,000
Cost of goods sold	4,124,000	3,119,000
Operating expenses	1,453,000	1,542,500

Prepare the divisional income statements for the two divisions. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. “Less” or “Plus” and colons will automatically appear if it is required. Be sure to complete the statement heading.

Divisional Income Statements


Tech Support Department	$ 560,700
Purchasing Department	89,600
Other corporate administrative expenses	585,000
Total corporate expense	$1,235,300

	Tech Support	Purchasing
Consumer Division	320 computers	1,940 purchase orders
Commercial Division	310	3,660
Total	630 computers	5,600 purchase orders

	Consumer	Commercial
Revenues	$7,410,000	$6,183,000
Cost of goods sold	4,124,000	3,119,000
Operating expenses	1,453,000	1,542,500

Labels and Amount Descriptions

GRAEL TECHNOLOGY

Divisional Income Statements

1		Consumer Division	Commercial Division
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10	Total service department charges
11	Income from operations

Labels
For the Year Ended December 31, 20Y7
For the Month Ended December 31, 20Y7
Service department charges
Amount Descriptions
Advertising Department
Cost of goods sold
Gross profit
Income from operations
Income from operations before service department charges
Operating expenses
Purchasing Department
Revenues
Selling expenses
Tech Support Department

Divisional Income Statements

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