Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss.

Prepare a departmental contribution to overhead report.

Based on contribution to overhead, should the electric guitar department be eliminated?

Complete this question by entering your answers in the tabs below.

Required $2$

Prepare a departmental contribution to overhead report.

$\backslash$table$[[$Departmental Contribution to Overhead,,$],[,$Acoustic,Electric,Combined$],[$For Year Ended December $31,,,],[$Gross profit,,,$],[$Direct expenses,,,$],[,,,],[,,,],[$Total direct expenses,,,$],[$Departmental contribution to overhead,,,$]]$

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