Exercise 9-7 (Algo) 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 xpenses Advertising Depreciation-Equipment Salaries Supplies used Rent Utilities Total expenses Income (loss) Acoustic Electric 47,250 $ 102,500 45,375 $ 84,100 57,125 36,850 5,075 4,320 10,050 8,530 20,200 18,000 1,990 1,730 7,035 6,000 3,035 2,620 47,385 41,200 $ 9,740 $ (4,350) 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 21 Prepare a departmental contribution to overhead report. Departmental Contribution to Overhead