Gamer's Haven is a computer store that has five departments. Three are operating departments (Hardware, Software, and Repairs) and two are service departments (Office and Purchasing).

To prepare departmental income statements, indirect expenses must be allocated across five departments. Then service department expenses must be allocated to the three operating departments. Allocation information follows.

The following additional information is obtained for indirect expense allocations.

Required
1. Prepare a departmental expense allocation spreadsheet.
2. Prepare a departmental income statement for each operating department and for all operating departments combined. Refer to Exhibit 22.11.
3. Prepare a departmental contribution to overhead report. Refer to Exhibit 22.12.

Data from Exhibit 22.11

Data from Exhibit 22.12

Transcribed Image Text:

Sales....... Cost of goods sold. Direct expenses Salaries Depreciation Supplies used.... Office $60,000 6,000 15.000 Purchasing Hardware Software Repairs $960,000 $600,000 $840,000 500,000 300,000 200,000 $45,000 7,200 10,000 80,000 33,000 10.000 25,000 4,200 2,000 325,000 9,600 25,000