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 $ 825,600 Shoes $ 464,400 410,000 301,860 121,000 87,000 14,000 10,300 20,000 14,000 The company reports the following indirect expenses for the year. Allocation Base Indirect Expense Utilities Supervisor salaries Amount $ 7,200 35,000 Square feet of space occupied Number of employees in department Additional information about the two departments follows. Department Clothes Shoes Square Footage 30,000 20,000 Number of Employees 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 $7,200 of utilities expense Department Clothes Shoes Total Square Footage Percent of Total Cost Allocated Allocation of $35,000 of supervisor salaries expense Clothes Shoes Total Employees Percent of Total Cost Allocated Required 1 Required 2 Prepare departmental income statements. DIAZ COMPANY Departmental Income Statements For Year Ended December 31 Expenses Total expenses Income Clothes Shoes