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Problem 9-3A (Algo) Departmental income statements LO P3 Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income

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Problem 9-3A (Algo) Departmental income statements LO P3 Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. Earbuds $ 105,000 65,100 39,900 Combined $ 285,000 153,300 131,700 GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Phone Sales $ 180,000 Cost of goods sold 88,200 Gross profit 91,800 Expenses Sales salaries 22,000 Supplies used 700 Depreciation-Equipment 2,400 Rent 7,110 Utilities 2,500 Share of office department expenses 10,500 Total expenses 45,210 Income $ 46,590 7,800 300 800 3,720 1,300 10,500 24,420 $ 15,480 29,800 1,000 3,200 10,830 3,800 21,000 69,630 $ 62,070 Required: Prepare a departmental contribution to overhead report. Garcia Company Departmental Contribution to Overhead For Year Ended December 31 Phone Earbuds Combined Direct expenses Total direct expenses Departmental contribution to overhead

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