Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information follows. For Year Ended December 31 Sales Cost of goods sold Direct expenses: Wages Supplies used Depreciation Clothes $ 832,000 Shoes $ 468,000 455,000 304,200 116,000 81,000 13,500 11,000 20,500 13,000 The company reports the following indirect expenses for the year. Indirect Expense Utilities Supervisor salaries Amount $ 7,400 32,000 Allocation Base Square feet of space occupied Number of employees in department Additional information about the two departments follows. Department Square Footage Number of Employees Clothes Shoes Required: 28,800 19,200 72 48 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements.