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Vortex Company operates a retail store with two departments. Information about those departments follows Department A $825,600 430,000 Department $464,400 301,860 Sales Cost of goods
Vortex Company operates a retail store with two departments. Information about those departments follows Department A $825,600 430,000 Department $464,400 301,860 Sales Cost of goods sold Dinect expenses Salaries Insurance Utilities Depreciation Maintenance 123,000 15,000 24,000 18,500 6,100 87,000 10,200 28,000 13,000 5,000 The company also incurred the following indirect costs. ce Salaries Insurance Depreciation Office expenses $28,000 7,600 15,000 47,000 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 30,100 12,900 Number of employees 84 36 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 dollor.) VORTEX COMPANY Departmental Contribution Statements Department Department Diect expenses 1. not round intermediate calculations. Round your final answers to nearest whole dollar.) VORTEX COMPANY Departmental Contribution Statements Department A Department B Direct expenses Total direct expenses Allocated indirect expenses Total indirect expenses Operating income (oss) 2. Should Department B be eliminated? Yes O No
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