Problem 22-4A Departmental contribution to income LO P3 Vortex Company operates a retail store with two departments. Information about those departments follows Department $Ba2,000 440,000 Department B 5468,000 304,200 Sales Cost of goods sold Direct expenses Salaries Insurance Utilities Depreciation Maintenance 116,000 14,000 23,500 17,500 6,300 85,000 10,000 27,000 12,500 5, 400 The company also incurred the following indirect costs. 6,400 Blaries Insurance Depreciation Office expenses 44,000 The company also incurred the following Indirect costs. Insurance Depreciation office expenses 336,000 6,400 14,800 14.000 Indirect costs are allocated as follows: Galaries on the basis of sales: Insurance and depreciation on the basis of square footage, and office expenses on the basis of number of employees. Additional Information about the departments follows, Departem Square footage Sumber of employees 20,000 36 84 12.000 Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department B. (Do not round intermediate calculations, Round your final answers to nearest whole dollar.) VORTEX COMPANY Departmental Contribution Statements Department A Department B 0 0 Direct expenses Total direct expenses 2,000 Required 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department B. (Do not round Intermediate calculations. Round your final answers to nearest whole dolar) VORTEX CONNY Departmental Contribution Batements Department Department 0 Direct expenses Total direct expenses 0 Allocated indirect expenses 0 Total indirect expenses Operating income foss) 0 0$ $ Total direct expenses 0 Allocated indirect expenses 0 Total indirect expenses Operating income (loss) $ 0 $ 0 2 Should Department B be eliminated? O Yes O No DUV follows: salaries on the basis of sales, Insuran of number of employees. Additional Information tage Number of employees 26 I contribution to overhead and the department ulations. Round your final answers to nearest Dlackboar 2. Problems Problem 22-4A Departmental contribution to income LO P3 Vortex Company operates a retail store with two departments. Information about those depart Department A $832,000 440,000 Department B $468,000 204, 200 Sales Cost of goods sold Direct expenses Salaries Insurance Utilities Depreciation Maintenance 116,000 14,000 23,500 17,500 6,300 85,000 10,000 27,000 12,500 5, 400 The company also incurred the following Indirect costs. Balaries Insurance Depreciation Office expenses $26,000 6,400 14,800 44,000 Indirect contrara allocated as follows salartes on the basis of sales Insurance and depreciation Utilities Depreciation Maintenance 19,000 23,500 17,500 6, 300 10,000 27,000 12,500 5, 400 The company also incurred the following Indirect costs. Salaries Insurance Depreciation Office expenses $36,000 6, 400 14,800 44,000 Indirect costs are allocated as follows: salaries on the basis of sales; Insur office expenses on the basis of number of employees. Additional Informa Department Number of employees Square footage 28.000 12,000 OND OS 14 Required: Datorming contribution to overhead and the departm VORTEX COMPANY Departmental Contribution Statements Department A Department B 0 0 Direct expenses Total direct expenses o o Allocated indirect expenses Ol Total indirect expenses Operating income (loss) $ 2 Should Department B be eliminated? O Yes O No
