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 Clothes $819,200 Shoes $460,800 435,000 299,520 122,000 85,000 12,500 10,200 20,500 13,500 Supplies used Depreciation The company reports the following indirect expenses for the year. Indirect Expense Utilities Supervisor salaries Amount $ 7,600 31,000 Allocation Base Square feet of space ofcupied Number of employees in department Additional information about the two departments follows. Department Square Footage Number of Employees Clothes Shoes 27,600 18,400 60 40 Required: 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements. Required 1 Required 2 Allocate indirect expenses to the two operating departments. Allocation of $7,600 of utilities expense Department Clothes Shoes Total Square Footage Percent of Total Cost Allocated Allocation of $31,000 of supervisor salaries expense Clothes Shoes Total Employees Percent of Total Cost Allocated Required 1 Required 2 > Required 1 Required 2 Prepare departmental income statements. DIAZ COMPANY Departmental Income Statements For Year Ended December 31 Expenses Total expenses Income Clothes Shoes < Required 1 Required 2