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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 GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Phone $170,000 Earbuds $ 105,000 Combined $275,000 83,300 65,100 148,400 86,700 39,900 126,600 21,000 8,700 29,700 1,050 800 1,850 1,500 500 2,000 Rent 7,060 3,840 10,900 Utilities 2,800 1,800 4,600 Share of office department expenses 13,000 3,500 16,500 Total expenses 46,410 19,140 65,550 $ 40,290 $ 20,760 $ 61,050 Depreciation-Equipment Income 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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