Managerial Accounting: E24-7 Ryan Snow Sports Company has two divisions, Wholesale and Retail

Managerial Accounting 
E24-7 Divisional income statements with service department charges 
Ryan Snow Sports Company has two divisions, Wholesale and Retail, and two corporate service departments, Tech Support and Accounts Payable. The corporate expenses for the year ended December 31, 2014, are as follows: 
Tech Support Department 845,000 
Accounts Payable Department 320,000 
Other corporate administrative expenses 502,300 
Total corporate expense $1,667,300 

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 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: 
Tech Support Accounts Payable 
Wholesale Division 400 computers 5,600 checks
Retail Division 250 10,400 
    Total 650 computers 16,000 checks

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: 
    Wholesale     Retail 
Revenues 7,430,000 6,184,000 
Cost of goods sold 4,123,000 3,125,000 
Operating expenses 1,465,000 1,546,000 

Prepare the divisional income statements for the two divisions. Do not round your interim calculations.
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