Problem 22-4A Departmental contribution to income LO P3

Vortex Company operates a retail store with two departments. Information about those departments follows.

	Department A			Department B
Sales	$	825,600		$	464,400
Cost of goods sold		480,000			301,860
Direct expenses
Salaries		123,000			86,000
Insurance		18,500			10,000
Utilities		24,500			28,000
Depreciation		18,000			13,000
Maintenance		6,600			5,300

The company also incurred the following indirect costs.

Salaries	$32,000
Insurance	7,600
Depreciation	15,200
Office expenses	48,000

Indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. Additional information about the departments follows.

Department	Square footage			Number of employees
A		28,700			60
B		12,300			40

Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department B. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)