Dunnes Stores has two service department, Advertising and Administration, and two operating departments, Hardware and Automotive. Sales, COGS, and direct expenses are given below. Complete the following table, including allocation of $220,000 of indirect costs. Indirect costs are allocated on the basis of square footage:... Advertising Department:750 square feet, Administration Department:1,500 square feet, Hardware Department: 3,000 square feet, Automotive Department: 9,750 square feet

Dunnes Stores
Revenues and Expenses
Y/E December 31, 2018
		Service Departments		Operating Departments
	Totals	Advertising	Admin	Hardware	Automotive
Sales	1,500,000			$675,000	$825,000
COGS	375,000			100,000	275,000
Direct Expenses	275,000	50,000	100,000	50,000	75,000
Indirect Expenses	220,000
Totals
Allocated Service Dept. Expenses
Dept. Name
Dept. Name
Total Expenses Allocated to Operating Depts.

Use the table above to allocate the service department expenses to the operating departments. Advertising Costs are allocated on the basis of number of advertisements in each department. Hardware had 60 ads and Automotive had 90. Administrative costs are allocated on the basis of sales. Complete the following Departmental Income Statement

Dunnes Stores
Departmental Income Statement
Y/E December 31, 2018
	Hardware	Automotive	Combined
Sales
Cost of Goods Sold
Gross Profit
Operating Expenses
Direct Expenses
Indirect Expenses
Share of Advertising Expenses
Share of Admin Expenses
Total Operating Expenses
Operating Income (Loss)

Complete the following Income Statement showing Departmental Contribution to Overhead

Dunnes Stores
Income Statement Showing Departmental Contribution to Overhead
Y/E December 31, 2018
	Hardware	Housewares	Combined
Sales
Cost of Goods Sold
Gross Profit
Direct Expenses
Departmental Contribution to Overhead
Indirect Expenses
Share of Advertising Expenses
Share of Administrative Expenses
Total Operating Expenses
Operating Income (Loss)