Divisional income statements with support department allocationsas follows:follows:controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows:Prepare the divisional income statements for the two divisions. Do not round your interim calculations.Horton TechnologyDivisional Income StatementsFor the Year Ended December $31,20\mathrm{????}7$Line Item DescriptionConsumer CommercialDivision DivisionOperating income before support department allocationsSupport department allocations:Total support department allocationsOperating income $✓✓$

 

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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, 2017, are as follows: Tech Services Department Purchasing Department Other corporate administrative expenses Total expense $770,500 292,000 457,000 $1,519,500 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: Consumer Division Purchasing 5,100 purchase orders Tech Services 410 computers Commercial Division 260 9,500 670 computers Total 14,600 purchase orders The support department allocations of the Tech Services 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: Revenues Cost of goods sold Operating expenses Consumer Commercial $6,744,400 $5,666,900 3,746,900 1,322,900 2,861,500 1,416,600 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Horton Technology Divisional Income Statements For the Year Ended December 31, 20Y7 Line Item Description Revenues Cost of goods sold Gross profit Operating expenses Operating income before support department allocations Support department allocations: Tech service department Purchasing department Total support department allocations Operating income Consumer Commercial Division Division 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, 2017, are as follows: Tech Services Department Purchasing Department Other corporate administrative expenses Total expense $770,500 292,000 457,000 $1,519,500 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: Consumer Division Purchasing 5,100 purchase orders Tech Services 410 computers Commercial Division 260 9,500 670 computers Total 14,600 purchase orders The support department allocations of the Tech Services 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: Revenues Cost of goods sold Operating expenses Consumer Commercial $6,744,400 $5,666,900 3,746,900 1,322,900 2,861,500 1,416,600 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Horton Technology Divisional Income Statements For the Year Ended December 31, 20Y7 Line Item Description Revenues Cost of goods sold Gross profit Operating expenses Operating income before support department allocations Support department allocations: Tech service department Purchasing department Total support department allocations Operating income Consumer Commercial Division Division

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