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I need help please Please complete the Problem as follows: Sadar Company operates a store with two departments: videos and music. Information about those departments
I need help please
Please complete the Problem as follows: Sadar Company operates a store with two departments: videos and music. Information about those departments follows. Videos Department Music Department $ 370,500 $ 279,500 320,000 175,000 Sales Cost of goods sold Direct expenses Salaries Maintenance Utilities Insurance 35,000 11,000 5,000 4,200 25,000 10,000 4,500 3,700 The company also incurred the following indirect costs. $ Advertising Salaries Office expenses 15,000 27,000 3,200 Indirect costs are allocated as follows: advertising on the basis of sales, salaries on the basis of number of employees, and office expenses on the basis of square footage. Additional information about the department follows. Department Square footage DQ QS EX PR Class Notes In-class Problem # of employees B C G H K 2 E Salaries Office expenses F 27,000 3,200 3 4 5 6 Indirect costs are allocated as follows: advertising on the basis of sales; salaries on the basis of number of employees; and office expenses on the basis of square footage. Additional information about the department follows. 7 Department Videos Music Square footage 5,000 3,000 # of employees 3 2 Required 1) For each department, determine the departmental contribution to overhead and the departmental net income. 2) Should the video department be eliminated? Explain. Check: (1) Music department net income, $42,850Step by Step Solution
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