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Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department

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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 Required: Phone $ 140,000 68,600 71,400 Earbuds $ 95,000 58,900 36,100 Combined $ 235,000 127,500 107,500 22,000 7,400 29,400 650 350 1,000 2,000 900 2,900 7,050 3,780 10,830 2,600 2,300 4,900 12,000 46,300 $ 25,100 Prepare a departmental contribution to overhead report. 5,000 19,730 $ 16,370 17,000 66,038 $ 41,470

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