Question
Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $812, 800 Sales Cost of goods sold Direct
Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $812, 800 Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities Depreciation Maintenance 440,000 Department B $457, 200 297, 180 124,000 80,000 20,000 10, 700 23,000 28,000 17,000 14,000 6, 600 5,000 The company also incurred the following indirect costs. Salaries Insurance $32,000 7,400 Depreciation Office expenses 14,600 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 A B Square footage 34, 300 14, 700 Number of employees 77 33
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