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 Shoes $ 812,800 $ 457,200 440,000 297,180 122,000 80,000 11,000 10,300 16,000 13,000 The company reports the following Indirect expenses for the year. Allocation Base Indirect Expense Utilities Supervisor salaries Amount $ 7,600 29,000 Square feet of space occupied Number of employees in department Additional Information about the two departments follows. Department Square Footage Clothes Shoes 28,800 19,200 Number of Employees 66 44 Required: 1. Allocate Indirect expenses to the two operating departments. 2. Prepare departmental Income statements.