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. GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Phone Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment Rent Utilities Share of office department expenses Total expenses Income Required: $ 160,000 78,400 Earbuds $ 115,000 Combined 71,300 $ 275,000 149,700 81,600 43,700 125,300 21,000 7,600 28,600 1,050 250 1,300 1,500 900 2,400 7,120 3,960 11,080 2,500 2,100 4,600 13,000 3,500 16,500 46,170 18,310 64,480 $ 35,430 $ 25,390 $ 60,820 Prepare a departmental contribution to overhead report. Garcia Company Departmental Contribution to Overhead For Year Ended December 31 Direct expenses Phone Earbuds Combined 0 0 0 Total direct expenses 0 0 0 Departmental contribution to overhead 0 0 0
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