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 $ 819,000 $ 441,000 470,000 286,650 121,000 87,000 13,500 10,300 19,000 13,000 The company reports the following indirect expenses for the year. Indirect Expense Utilities Supervisor salaries Amount $ 6,400 31,000 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: 30,800 13,200 70 30 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements. Complete this question by entering your answers in the tabs below.