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Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $845,000 405,000 Department B $455,000 295, 750 Sales Cost
Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $845,000 405,000 Department B $455,000 295, 750 Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities Depreciation Maintenance 122,000 16,000 23,500 15,500 6,100 83,000 10,600 26,000 13,500 5,700 The company also incurred the following Indirect costs. Salaries Insurance Depreciation Office expenses $35,000 6,480 15, see 45, eee 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.ee 14,7ee Number of employees 66 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? 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 1 Direct expenses Total direct expenses Allocated indirect expenses Total indirect expenses Operating income (loss) Homework Department Number of employees Square footage 34,300 14,709 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 1 Required 2 Should Department B be eliminated? Should Department 3 be eliminated?
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