The centralized Help Desk of Exton Company has expenses of $120,000. The department has provided a total of 12,000 hours of service for the period. The Fabrication Division has used 5,000 hours of Help Desk service during the period, and the Assembly Division has used 7,000 hours of Help Desk service. How much should each division be charged for travel services?
Using the data for the Exton Company along with the data provided below, determine the divisional income from operations for the Fabrication and Assembly divisions.
|
|
Fabrication Division |
Assembly Division |
|
Sales |
$1,080,000 |
$1,200,000 |
|
Cost of goods sold |
567,000 |
740,000 |
|
Selling expenses |
249,750 |
230,000 |