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Vortex Company operates a retail store with two departments. Information about those departments follows. Department a $800,000 485,000 Department B $ 450,000 292,500 Sales Cost
Vortex Company operates a retail store with two departments. Information about those departments follows. Department a $800,000 485,000 Department B $ 450,000 292,500 Sales Cost of goods sold Direct expenses Salaries Insurance Utilities Depreciation Maintenance 124,000 18,500 21,500 17,000 7,000 87,000 10,100 27,500 12,000 5,500 The company also incurred the following indirect costs. Salaries Insurance Depreciation office expenses $30,000 6,400 14, 600 44,000 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 32,200 13,800 Number of employees 77 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? 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 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 Direct expenses Total direct expenses Allocated indirect expenses Total Indirect expenses Operating income loss)
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