Question
Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department
Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment Rent Utilities GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Share of office department expenses Total expenses Income Phone 172,900 152,100 $ 220,000 107,800 Earbuds $ 105,000 Combined $ 325,000 112,200 65,100 39,900 22,000 8, 200 30, 200 1,150 650 1,800 1,800 200 2,000 7,050 3,720 10,770 3,100 1,900 5,000 12,500 9,500 22,000 47,600 24,170 71,770 $ 64,600 $ 15,730 $ 80,330 Required: Prepare a departmental contribution to overhead report. Garcia Company Departmental Contribution to Overhead For Year Ended December 31 Direct expenses Total direct expenses Departmental contribution to overhead Phone Earbuds Combined
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