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Hayes Parker Construction has two operating departments, Commercial and Residential, supported by a number of service departments. The following information was collected for its most
Hayes Parker Construction has two operating departments, Commercial and Residential, supported by a number of service departments. The following information was collected for its most recent year of activity: Commercia Residential Indirect Costs Dept Dept Wages and salaries Insurance Depreciation of equipment Maintenance of business office Utilities of business office Cost of goods sold 462,500 85,160 97,182 642,350 250,000 15,000 12,250 18,000 13,500 64,660 76,548 961,250 2,487,500 Indirect costs are allocated as follows: wages/salaries based on the number of employees in each department, insurance and depreciation on the basis of sales, and maintenance and utilities of the business office on the basis of square footage Additional information about the operating departments follows: Square Footage 1,400 2,600 Number of Employees Sales S1,927,500 S4,497,500 Commercial 12 Prepare the departmental income statement for the Commercial and Residential departments, including a line for departmental contribution to overhead, You may use the form on the following page. Round to the nearest whole dollar where applicable. Use the form on the following page. Hayes Parker Construction Departmental Income Statement For the Year Ended December 31 Commercial Residential Sales of goods sold ross profit Direct expenses Wages and salaries expense Insurance ex reciation nt expense Total direct exp Departmental contribution to overhead Indirect expense allocations: Wages and salaries ex Insurance expense reciation t expense Maintenance expense Utilities expense Total indirect expenses Net income loss
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