The centralized computer technology department of Lee Company has expenses of $264,000. The department has provided a total of 2,500 hours of service for the period. The Retail Division has used 1,125 hours of computer technology service during the period, and the Commercial Division has used 1,375 hours of computer technology service. How much each division should be charged for computer technology department services?
The centralized computer technology department of Lee Company has expenses of $264,000. The department has provided a total of 2,500 hours of service for the period. The Retail Division has used 1,125 hours of computer technology service during the period, and the Commercial Division has used 1,375 hours of computer technology service. How much each division should be charged for computer technology department services?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. The centralized computer technology department of Lee Company has expenses of $264,000. The department has provided a total of 2,500 hours of service for the period. The Retail Division has used 1,125 hours of computer technology service during the period, and the Commercial Division has used 1,375 hours of computer technology service. How much each division should be charged for computer technology department services?
2. Using the data for Lee Company from problem 24-2 above along with the following data, determine the divisional income from operations for the Division and the Commercial Division:
Transcribed Image Text:Commercial
Retail Division
Division
Sales
945,000
966,000
Cost of Goods Sold
504,000
559,300
Selling expense
156,800
175,000
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