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Vortex Company operates a retail store with two departments. Information about those departments follows. Department $838,500 410,000 Department B $451,500 293,475 Sales Cost of goods

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Vortex Company operates a retail store with two departments. Information about those departments follows. Department $838,500 410,000 Department B $451,500 293,475 Sales Cost of goods sold Direct expenses Salaries Insurance Utilities Depreciation Maintenance 124.000 16,000 24,500 19,500 7.000 88,000 10.600 28,500 12.000 5,700 The company also incurred the following indirect costs. Salaries Insurance Depreciation Office expenses $30,000 7,600 14,800 46,000 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 Number of employees Square footage 28.000 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 Sales $ 838,500 $ 451,500 Cost of goods sold 410,000 293,475 Gross profit 428,500 158,025 Direct expenses Salaries 124,000 88,000 insurance 16,000 10,600 ties 24,500 28,500 Depreciation 10,500 12,000 Maintenance 7,000 5,700 Total direct expenses 191.000 144.800 Allocated indirect expenses 19.500 101500 insurance 53201 10.380 Depreciation Torice 27.500 18.400 Department contribution statements Department A Department B Sales $ 838.500 $ 451.500 Cost of goods sold 410,000 293,475 Gross profit 428,500 158,025 Direct expenses Salaries 124,000 88,000 Insurance 16,000 10.600 Utilities 24,500 28,500 Depreciation 19,5001 12.000 Maintenance 7.000 5.700 Total direct expenses 191,000 144,800 Allocated indirect expenses Salaries Insurance Depreciation Office 19,500 5,320 10,360 27,600 10,500 2.280 4.440 18.400 Total indirect expenses Operating income (loss) 62,780 (62,780) 35,620 (35,620) $ $

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