Question
3 16 points Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses
3 16 points Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. GARCIA COMPANY Departmental Income Statements For Year Ended December 31 eBook Print o Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment Rent Utilities Share of office department expenses Total expenses References Income Phone $ 240,000 117,600 122,400 Earbuds $ 95,000 58,900 36,100 Combined $ 335,000 176,500 158,500 21,500 700 8,500 30,000 600 1,300 1,600 300 1,900 7,080 4,020 11,100 2,800 2,500 5,300 13,500 6,000 47,180 21,920 $ 75,220 $ 14,180 19,500 69,100 $ 89,400 Required: Prepare a departmental contribution to overhead report. Garcia Company Departmental Contribution to Overhead For Year Ended December 31 Direct expenses Phone Earbuds Combined 0 0 0 Total direct expenses 0 0 0 Departmental contribution to overhead 0 0 $ 0
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