Problem 22-4A Departmental income P3 Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information follows. For Year Ended December 31 Sales Cost of goods sold Direct expenses: Wages Supplies used Depreciation The company reports the following indirect expenses for the year. Indirect Expense Utilities Supervisor salaries Additional information about the two departments fdows. Amount $ 6,000 Clothes Shoes 50,000 Department Square Footage Check (2) Clothes income, $95,800 28,000 12,000 Clothes $800,000 497,000 125,000 20,000 28,000 Required 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements. Allocation Base Square feet of space occupied Number of employees in department Shoes $450,000 291,000 88,000 10,000 17,000 Number of Employees 75 50

please help, i dont understand the steps for "required 1 and 2"

Problem 22-4A Departmental income Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information follows. The company reports the following indirect expenses for the year. Additional information about the two departments folfows. Required 1. Allocate indirect expenses to the two operatine departments. 2. Prepare departmental income statements