Gomez Company has two service departments (Personnel and Office) and two operating departments (Shoes and Clothing). Following are the direct expenses and square feet occupied by the four departments, and the total sales for the two operating departments. Sales Department Personnel Office Shoes clothing Direct Expenses $ 15,000 27,000 103,000 13,000 Square Feet 500 700 4,100 4,700 $ 124,000 186,000 The company also has $74,000 of utilities expense, which is an indirect expense to all departments and is allocated to the four departments based on square feet occupied. The Shoes department has 38 employees and the Clothing department has 152 employees. Personnel expense is allocated to operating departments based on the number of employees. Office expense is allocated to operating departments based on sales. 1. Allocate utilities expense to the four departments. 2. Allocate personnel expense to the Shoes and Clothing departments. 3. Allocate office expense to the Shoes and Clothing departments. Utilities Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Department Personnel 0 Office 0 0 Shoes 0 0 0 Clothing Totals 0 Personnel expense Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Department Shoes 0 0 Clothing Totals 0 Office expense Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Shoes 0 0 Clothing Totals 0 The Ski department reports sales of $625,000 and cost of goods sold of $437,500. Its expenses follow. Direct expenses Salaries $ 119,000 Depreciation 48,200 Indirect expenses Rent $ 15,500 Service department expenses Office $ 25,800 1. For the Ski department only, prepare a departmental income statement. 2. & 3. For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? Reg 1 Req 2 and 3 For the Ski department only, prepare a departmental income statement. Departmental Income Statement For Year Ended December 31 Ski Department 0 Expenses Total expenses 0 $ 0 Reg 1 Req 2 and 3 > Reg 1 Reg 2 and 3 For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? Departmental Contribution to Overhead For Year Ended December 31 Ski Department 0 0 Total direct expenses Departmental contribution to overhead Should the Ski department be eliminated? $ 0