Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect.

WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017
	Acoustic			Electric
Sales	$	101,900		$	83,600
Cost of goods sold		45,175			47,750
Gross profit		56,725			35,850
Operating expenses
Advertising expense		5,055			4,310
Depreciation expenseequipment		10,070			8,520
Salaries expense		19,900			17,300
Supplies expense		1,980			1,740
Rent expense		7,015			5,950
Utilities expense		3,035			2,640
Total operating expenses		47,055			40,460
Net income (loss)	$	9,670		$	(4,610	)

1. Prepare a departmental contribution report that shows each departments contribution to overhead.

WHOLESALE GUITARS Income Statement Showing Departmental Contribution to Overhead For Year Ended December 31, 2017 Acoustic Dept. Electric Dept.Combined Direct expenses Total direct expenses 0 0 Departmental contributions to overhead 0 Indirect expenses Total indirect expenses 0