Problem $22-3$A $($Algo$)$ Departmental income statements LO P$3$

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 $31$

Phone Earbuds Combined

Sales $ $140,000$ $ $115,000$ $ $255,000$

Cost of goods sold $68,60071,300139,900$

Gross profit $71,40043,700115,100$

Expenses

Sales salaries $21,5007,20028,700$

Supplies used $6503501,000$

Depreciation$$Equipment $2,0003002,300$

Rent $7,0903,90010,990$

Utilities $3,1001,2004,300$

Share of office department expenses $10,5008,00018,500$

Total expenses $44,84020,95065,790$

Income $ $26,560$ $ $22,750$ $ $49,310$

Required:

Prepare a departmental contribution to overhead report.