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Operating Income for Profit Center The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of 4,000 hours of service for the peri

Operating Income for Profit Center
The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of 4,000 hours of service for the period. The Retail Division has used 2,750 hours of
computer technology service during the period, and the Commercial Division has used 1,250 hours of computer technology service. Additional data for the two divisions is following below:
Retail Division Commercial Division
Sales
$2,150,000
$1,200,000
Cost of goods sold
1,300,000
800,000
Selling expenses
150,000
175,000
Determine the divisional operating income for the Retail Division and the Commercial Division. Do not round interim calculations.
Hardy Company
Divisional Operating income
Retail Division
Commercial Division
Sales v
Cost of goods sold v
Gross profit
Selling expenses v
Operating income before service department charges v
Service department charges v
Operating income

Aug 23 2020 View more View Less

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