22

Vortex Company operates a retail store with two departments. Information about those departments follows. DepartmentA $806,400 470,000 Department B $453,600 294,840 Sales Cost of goods sold Direct expenses Salaries 122,000 19,500 22,000 19,500 88,000 10,200 25,500 Insurance Utilities Depreciation Maintenance 13,000 5,300 6,600 The company also incurred the following indirect costs. Salaries $35,000 6,600 15,400 43,000 Insurance Depreciation Office expenses Indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. Additional information about the departments follows. Department Square footage 29,400 Number of employees 66 12,600 44 Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department B. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) VORTEX COMPANY Departmental Contribution Statements Department B Department A Direct expenses Total direct expenses Allocated indirect expenses Total indirect expenses Operating income (loss)