Exercise 24-7 (Static) Departmental contribution to overhead LO P3 Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Advertising Depreciation-Equipment Salaries Supplies used Rent Utilities Total expenses Income (loss) Electric Acoustic $112,500 $ 105,500 55,675 66,750 56,825 38,750 8,075 6,250 10,150 9,000 17,300 13,500 2,030 1,700 6,105 5,950 3,045 2,550 46,705 38,950 $ 10,120 $ (200) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Denu 4 of 5 Next > 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Check my work Required 1 Required 2 Prepare a departmental contribution to overhead report. Departmental Contribution to Overhead For Year Ended December 31 Acoustic Electric Ce+bined 15 Gross profit Direct expenses Total direct expenses Departmental contribution to overhead i Required 1 Required 2 > nnect Homework Kent Utilities Total expenses Income (loss) Saved Help Save & Exit Su Check my wa 6,105 3,045 5,950 2,550 46,705 38,950 $ 10,120 $ (200) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Based on contribution to overhead, should the electric guitar department be eliminated? Based on contribution to overhead, should the electric guitar department be eliminated? < Required 1 Required 2 > Prev 4 of 5 Next >