The other corporate administrative expenses induce officers\' salaries and other
ID: 2486092 • Letter: T
Question
The other corporate administrative expenses induce 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 Accounts Payable Department charges divisions for services, based on the number of checks issued for each department. The usage of service by the two divisions is as follows: The service department charges of the Tech Support Department and the Accounts Payable 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:Explanation / Answer
Wholesale Retail Total Revenues 10089200 7869500 17958700 Cost of goods sold 5605100 3973700 9578800 operating expenses 1979000 1967200 3946200 Income from operations before service 2505100 1928600 4433700 tech support expenses 743900 467100 1211000 accounts payable expenses 114000.00 212000.00 326000 other corporate administrative expenses 371349.89 289650.11 661000.00 allocated on revenue net divisional income 1275850.11 959849.89 2235700.00
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