Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $48.200 and for Purchasing is $40.200. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders. Department Books Magazines Newspapers Total Sales 5167,700 89,700 132,600 5 390,000 Purchase Orders 1.232 756 312 2,800 Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given Information Allocation Base Salon Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator of Total 0 Office Department Books Magazines Newspapers Totais 0 0 0 Allocation Base Purchasing Department Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator of Total 0 0 Magnes Nuwepo So 0 Pro Next > Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as Indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. Electric $ 83,500 47,050 36,450 Departmental Income Statements Tor Year Ended December 31 Acoustic Sales $ 102,000 Cost of goods sold 45,175 Gross profit 56,025 Expenses Advertising 5,055 Depreciation Equipment 10,000 Salaries 19,300 Supplies used 2.000 Rent 7,095 Utilities 2.95 Total penses 4651 Incon (less) $ 10,50 4,310 B. 540 17,100 1,60 1980 210 40100 $ 0.050) 1. Prepare a departmental contribution to overhead report 2. Based on contibution to overhead, should the electric guitar department be eliminated? Prepare a departmental contribution to overhead report. Departmental Contribution to Overhead For Year Ended December 31 Acoustic Electric Combined Gross profit Direct expenses 0 Total direct expenses Departmental contribution to overhead 0 0 $ 0 $ 0 S 0 Rou Required 2