Exercise 9-7 (Algo) Departmental contribution to overhead LO P3 Below are departmental income statements for a quitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitat department because it shows a loss est) For Year Ended December 33 Departmental Income Statements Acoustic Sales Cost of goods sold) Gross profit Expenses Advertising Depreciation-Equipment Salaries Supplies used Rent utilities Total expenses $ 102,600 45,175 57,425 Electric $83,000 47,150 16,650 4,985 10,100 4,260 8,500 20,200 17,200 1,900 1,770 7,015 5,970 3,005 2,570 47,265 40,270 Income (loss) $10,160 $ (3,620) 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 Prepare a departmental contribution to overhead report. Departmental Contribution to Overhead