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 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 $7,440,000 $6,189,000 Cost of goods sold 4,112,000 3,119,500 Operating expenses 1,458,000 1,543,000 Required: Prepare the divisional income statements for the two divisions. Refer to the list of Label and Amount Descriptions for the exact wording of the answer choices for text entries. A colon (:) will fill in where needed. Divisional Income Statements Prepare the divisional income statements for the two divisions. Refer to the list of Label and Amount Descriptions for the exact wording of the answer choices for text entries. A colon (:) will fill in where needed. Yozamba Technology Divisional Income Statements For the Year Ended December 31, 20Y7 1 Consumer Division Commercial Division 2 3 4 5 6 7 8 9 10 11

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 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 $7,440,000 $6,189,000 Cost of goods sold 4,112,000 3,119,500 Operating expenses 1,458,000 1,543,000 Required: Prepare the divisional income statements for the two divisions. Refer to the list of Label and Amount Descriptions for the exact wording of the answer choices for text entries. A colon (:) will fill in where needed. Divisional Income Statements Prepare the divisional income statements for the two divisions. Refer to the list of Label and Amount Descriptions for the exact wording of the answer choices for text entries. A colon (:) will fill in where needed. Yozamba Technology Divisional Income Statements For the Year Ended December 31, 20Y7 1 Consumer Division Commercial Division 2 3 4 5 6 7 8 9 10 11

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	$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 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	$7,440,000	$6,189,000
Cost of goods sold	4,112,000	3,119,500
Operating expenses	1,458,000	1,543,000

Required:

Prepare the divisional income statements for the two divisions. Refer to the list of Label and Amount Descriptions for the exact wording of the answer choices for text entries. A colon (:) will fill in where needed.

Divisional Income Statements

Yozamba Technology

Divisional Income Statements

For the Year Ended December 31, 20Y7

1	Consumer Division	Commercial Division
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