Richfield Honda had the following data for the years operations:

Sales of vehicles	$3,100,000
Sales of parts and service	500,000
Cost of vehicle sales	2,480,000
Parts and service materials	100,000
Parts and service labor	200,000
Parts and service overhead	40,000
General dealership overhead	180,000
Advertising of vehicles	100,000
Sales commissions, vehicles	155,000
Sales salaries, vehicles	88,000

The president of the dealership has long regarded the markup on material and labor for the parts and service activity as the amount that is supposed to cover all parts and service overhead plus some general overhead of the dealership. In other words, the parts and service department is viewed as a cost-recovery operation, while the sales of vehicles is viewed as the income-producing activity.

• 1. Prepare a departmentalized operating statement that harmonizes with the views of the president.
• 2. Prepare an alternative operating statement that would reflect a different view of the dealership operations. Assume that $30,000 and $89,000 of the $180,000 general overhead can be allocated with confidence to the parts and service department and to sales of vehicles, respectively. The remaining $61,000 cannot be allocated except in some highly arbitrary manner.
• 3. Comment on the relative merits of numbers 1 and 2.

this was all the information given to me to solve

INTRODUCTION TO MANAGEMENT ACCOUNTING 16E Problem 9-43 Name Section F Richfield Honda A C D B G H B 5 Part I. Parts and Services 500,000 $ Vehicles $ 3,100,000 Amount Amount Amount Amount 7 Sales 8 Cost of sales 9 Parts and service materials 10 Parts and service labor 11 Sales commissions 12 Subtotal 13 Markup on material and labor 14 Parts and service overhead 15 Advertising 16 Sales salaries 17 General dealership overhead 18 Operating expenses 19 Net income Formula 1 Amount Formula 3 Amount Amount Amount Amount Formula 2 Formula 4 21 Part 2 Parts and Services Formula Amount Vehicles Formula 7 Total S- Amount Amount Amount Amount 23 Markup on material and labor 24 Parts and service overhead 25 Advertising 26 Sales salaries 27 Direct allocation of general overhead 28 Total expenses directly charged to departments 29 Departmental contribution to net income 30 General overhead not allocable 31 Net income of the dealership as a whole 32 33 Part 3 34 Type answer starting here Formula 6 Formula 8 Amount #VALUE! 36 3 End of