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Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $812,800 405,eee Department B 5457,200 297,180 Sales Cost of

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Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $812,800 405,eee Department B 5457,200 297,180 Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities Depreciation Maintenance 120,000 17,000 23,580 20,000 6,600 80,000 10,300 24,500 13,500 6,080 The company also incurred the following Indirect costs. Salaries Insurance Depreciation Office expenses $35,000 6,4ee 14,200 49.000 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. Dent Square footage 28.700 12.300 Number of employees 72 33 Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department B. 2 Should Department B be eliminated? Complete this question by entering your answers in the tabs below. Required Required 2 Determine the departmental contribution to overhead and the departmental net income for department A and Department B. (Do not round Intermediate calculation found your internarehole dollar VORTEX COMPANY Departmental Contribution Statements comprere this question by entering your answers in the caos below. Required 1 Required 2 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 Department B 0 Direct expenses Total direct expenses Allocated indirect expenses 0 0 Total Indirect penses Operating income foss 5 S Red 2 > The company also incurred the following Indirect costs. $35,000 Salaries Insurance Depreciation Office expenses 6,400 14,200 49,00 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 28,700 12,380 Number of employees 27 33 3 Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department B 2. Should Department B be eliminated? Complete this question by entering your answers in the tabs below. Required Requi Should Department B be eliminated? Should Department be eliminated?

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