Question: Based on the follow information how I can determine the departmental contribution to overhead and the departmental net income for each deparment? Sadar Company operates

Based on the follow information how I can determine the departmental contribution to overhead and the departmental net income for each deparment?

Based on the follow information how I can determine the departmental contribution

Sadar Company operates a store with two departments: videos and music. Information about those departments follows. Videos Department Music Department Sales . . . .. . . $370,500 $279,500 Cost of goods sold . . . . . . . 320,000 175,000 Direct expenses Salaries . . . . . . . . . . . . . . . .. 35,000 25,000 Maintenance . . . . . . . . . . .. 12,000 10,000 Utilities . . . . . . . . . . . . . . . 5,000 4,500 Insurance . . . . . . 4,200 3,700 The company also incurred the following indirect costs. Advertising $15,000 Salaries . . . . . . . . . . . . . 27,000 Office expenses . .... .. . 3,200 Indirect costs are allocated as follows: advertising on the basis of sales; salaries on the basis of number of employees; and office expenses on the basis of square footage. Additional information about the departments follows. Department Square footage Number of employees Videos . . . . . . . . 5,000 Music . . . . . . . . . 3,000 NW

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