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 $ 806,400 Shoes $ 453,600 465,000 294,840 116,000 86,000 13,000 10,600 20,000 12,500 The company reports the following indirect expenses for the year. Indirect Expense Utilities Supervisor salaries Amount $ 7,600 27,000 Allocation Base Square feet of space occupied Number of employees in department Additional information about the two departments follows. Department Square Footage Clothes Shoes Required: 27,600 18,400 Number of Employees 66 44 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements.