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 $ 819,000 Shoes $ 441,000 470,000 286,650 122,000 85,000 19,500 10,200 15,500 13,000 The company reports the following indirect expenses for the year. Indirect Expense Utilities Supervisor salaries Amount $ 7,400 27,000 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: 25,800 17,200 66 44 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements.