The centralized computer technology department of Lee Company has expenses of $2
ID: 2469634 • Letter: T
Question
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. Retail Division Commercial Division Sales $945,000 $966,000 Cost of goods sold 504,000 559,300 Selling expenses 156,800 175,000 Use the data provided to determine the divisional income from operations for the Division and the Commercial Division. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. X Divisional Income Statements
Use the data provided to determine the divisional income from operations for the Division and the Commercial Division. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
Lee Company
Divisional Income Statements
For the Year Ended June 30, 2016
1
Retail Division
Commercial Division
2
3
4
5
6
7
8
Lee Company
Divisional Income Statements
For the Year Ended June 30, 2016
Explanation / Answer
Lee Company Divisional Income Statements For the Year Ended June 30, 2016 Retail Division Commercial Division Sales $945,000 $966,000 Less: Cost of Good Sold 504000 559300 Gross Margin $441,000 $406,700 Less: Opearting Expenses Selling Expenses 156800 175000 Cost from computer department/Support Cost $118,800.00 $145,200.00 Total Opearting expenses $275,600.00 $320,200.00 Divisional Income from Opearations $165,400.00 $86,500.00 Cost from computer department C $264,000 Total hours of service provided T 2500 hours Cost per Hour C/T $105.60 Cost allocated on the hours of service used by department Hours Cost alloacted Retail Division 1125 $118,800.00 Commercial Division 1375 $145,200.00 $264,000.00
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