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Vortex Company operates a retail store with two departments. Information about those departments follows Department A Department B Sales Cost of goods sold Direct expenses
Vortex Company operates a retail store with two departments. Information about those departments follows Department A Department B Sales Cost of goods sold Direct expenses $838,500 470,000 451,500 293,475 Salaries Insurance Utilities Depreciation Maintenance 120,000 11,500 20,000 18,500 6,400 84,000 11,000 26,000 12,500 5,100 The company also incurred the following indirect costs Salaries Insurance Depreciation Office expenses $29,000 7,800 15,800 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 34,300 14,700 Number of employees Requirec 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.) Answer is not complete VORTEX COMPANY Departmental Contribution Statements Department Department $838,50 451,500 4700293,475 158,025 Sales Cost of goods sold Gross profit Direct expenses Salaries Insurance Utilities Depreciation Maintenance 368,500 120,00084,000 11,500 | 11.000 20,000 26,000 18,50012,500 6,4005,1 Total direct expenses Departmental contributions to overhead192,100 Allocated indirect expenses Salaries Insurance Depreciation Office 176,400 138,600 19,425 Total indirect expenses Operating income (loss) $ 192,100 19,425
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