Divisional income statements with service department charges

grael 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 $336,000

purchasing department 67,500

other corporate administrative expenses 448,000

total corporate expense $851,500

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

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