I cant figure how to calculate insurance, depreciation and office space on page

Question

I cant figure how to calculate insurance, depreciation and office space on page 2... Please help! Problem 22-6A Departmental contribution to income LO P1 Vortex Company operates a retail store with two departments. Information about those departments follows Department A Department B Sales Cost of goods sold Direct expenses $1,164,800 $655,200 698,880 458,640 Salaries Insurance Utilities Depreciation Maintenance 144,000 20,000 34,000 30,000 12,000 96,000 10,000 10,000 31,000 8,000 The company also incurred the following indirect costs Salaries Insurance Depreciation Office expenses $42,000 10,000 18,000 52,000 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 Square footageNumber of employees 36,000 12,000 75 50 Required 1. For each department, determine the departmental contribution to overhead arid the departmental net income

Explanation / Answer

Chi Lite Inc, Jun-16 Details Amt $ Raw material purchased             396,000 Raw materials issued             341,540 Raw Materials stock on Jun30               54,460 Cost of Goods manufactured Amt $ Direct Materials             341,540 Direct Labor cost             296,900 Factory Overhead@70% of Direct Labor cost             207,830 Total Cost of goods manufactured             846,270 Transferred to FG             817,280 WIP Balance               28,990 Transfer to FG stock in month             817,280 Cost of Goods sold             798,500 FG Stock balance june 30               18,780 Chi Lite Inc, Income Statement June 2016. Details Amt $ Sales Revenue         1,392,000 Cost of Goods Sold calculation Amt $ Direct Materials purchased             396,000 Direct Labor cost             296,900 Factory Overhead@70% of Direct Labor cost             207,830 Total Cost of goods manufactured             900,730 Less Closing Stock Raw Materials stock on Jun30               54,460 WIP Closing Stock Jun 30               28,990 FG Stock balance june 30               18,780 Total Closing Stock             102,230 Cost of Goods Sold             798,500 Gross Profit             593,500 Less; oprating Expenses Admin Expenses             121,530 Selling Expenses             312,020 Net Opearting Income             159,950 June 30 Closing Stock details Amt $ Raw Materials stock on Jun30               54,460 WIP Closing Stock Jun 30               28,990 FG Stock balance june 30               18,780 Total Closing Stock             102,230 Vortex Company Alloaction of Indirect Expenses Dept A Dept B Total Sales         1,164,800           655,200      1,820,000 % of total Sales 64.00% 36.00%                  100 Allocation of Salaries               26,880             15,120            42,000 Square footage               36,000             12,000            48,000 % of Total sq footage 75.0% 25.0% Allocation Insurance                  7,500               2,500            10,000 Allocation of depreciation               13,500               4,500            18,000 No of employees                        75                     50                  125 % of total employees 60.0% 40.0% Office Expense               31,200             20,800            52,000 Vortex Company Departmental Income Statement Amt in $ Details Dept A Dept B Sales         1,164,800           655,200 Cost of Goods sold             698,880           458,640 Gross Margin             465,920           196,560 Direct Expenses Salaries             144,000             96,000 Insurance               20,000             10,000 Utilities               34,000             10,000 Depreciation               30,000             31,000 Maintenance               12,000               8,000 Total Direct Expenses             240,000           155,000 Departmental Contribution to Overhead             225,920             41,560 Allocated Indirect Expenses Salaries               26,880             15,120 Insurance                  7,500               2,500 Depreciation               13,500               4,500 Office expense               31,200             20,800 Total Indirect Expense allocated               79,080             42,920 Departmental Net Income             146,840             (1,360) 2 Based on departmental contribution to overhead Department B should not be eliminated as it is showing positive return

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