Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental...

 

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Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment Rent Utilities Share of office department expenses Total expenses Income Required: Phone Earbuds Combined $ 130,000 63,700 66,300 $ 55,000 $ 185,000 34,100 97,800 20,900 87,200 21,200 7,500 28,700 900 400 1,300 1,500 300 1,800 7,020 3,780 10,800 2,600 1,400 4,000 10,500 4,500 15,000 43,720 17,880 61,600 $ 22,580 $ 3,020 $ 25,600 Prepare a departmental contribution to overhead report. Garcia Company Departmental Contribution to Overhead For Year Ended December 31 Gross profit Direct expenses Total direct expenses Departmental contribution to overhead Phone Earbuds Combined Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment Rent Utilities Share of office department expenses Total expenses Income Required: Phone Earbuds Combined $ 130,000 63,700 66,300 $ 55,000 $ 185,000 34,100 97,800 20,900 87,200 21,200 7,500 28,700 900 400 1,300 1,500 300 1,800 7,020 3,780 10,800 2,600 1,400 4,000 10,500 4,500 15,000 43,720 17,880 61,600 $ 22,580 $ 3,020 $ 25,600 Prepare a departmental contribution to overhead report. Garcia Company Departmental Contribution to Overhead For Year Ended December 31 Gross profit Direct expenses Total direct expenses Departmental contribution to overhead Phone Earbuds Combined