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27 Macee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are $104,000. Sales for its operating departments follow. Department Sales $ 292, 500 561 , 600 How much advertising cost is allocated to each operating department if the allocation is based on departmental sales? (Do not round your intermediate calculations.) Department Sales Percent of Total Cost Allocated % % Total 28 Use the information below to prepare (a) departmental income statements and (b) the departmental contribution to overhead. Salaries are direct expenses, and all other expenses are indirect expenses. Food Beverage Sales 124, 000 84,000 Cost of goods sold 73, 090 45, 000 8 03:33:07 Gross profit 51, 000 19 , 000 Expenses salaries 14,500 8, 250 3, 300 1, 700 Utilities 2, 500 Share of office expenses 5 , 250 Share of purchasing expenses 4, 750 6, 160 6, 650 Complete this question by entering your answers in the tabs below. Required A Required B Prepare departmental income statements Departmental Income Statements Food Beverage Expenses Total expenses Income Required A Required B Prepare the departmental contribution to overhead. Departmental Contribution to Overhead Food Beverage Direct expenses Total direct expenses Departmental contribution to overhead 31 Kando Company currently pays $18 per unit to buy a part for a product it manufactures. Instead, Kando could make the part for per unit costs of $8 for direct materials, $5 for direct labor, and $2 for incremental overhead. Kando normally applies overhead costs using a predetermined rate of 200% of direct labor cost. (a) Prepare a make or buy analysis of costs for this part. (b) Should Kando make or buy the part? 8 03:31:58 Make Buy Direct materials Direct labor Overhead Cost to buy Cost per unit