Meman Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental incomestatements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses.SalesCost of goods soldGross profitExpensesSales salariesSupplies usedDepreciation-EquipmentRentUtilitiesGARCIA COMPANYDepartmental Income StatementsFor Year Ended December 31Share of office department expensesTotal expensesIncomePhone$ 250,000122,500127,500Earbuds$ 95,00058,900Combined$ 345,000181,40036,100163,60020,0008,70028,7008008001,6001,5005002,0007,0303,48010,5102,9002,2005,10012,5009,50022,00044,73025,18069,910$ 82,770$ 10,920$ 93,690Required:Prepare a departmental contribution to overhead report.Garcia CompanyDepartmental Contribution to OverheadFor Year Ended December 31Gross profitDirect expensesTotal direct expensesDepartmental contribution to overheadPhoneEarbudsCombined

1. Phone Department:- Gross profit: Sales - Cost of goods sold = $250,000 - $122,500 = $127,500-…

Answered: Garcia Company has two operating…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 9SPA: INCOME STATEMENT WITH DEPART MENTAL DIRECT OPERATING MARGIN AND TOTAL OPERATING INCOME Durwood...

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Divisional income statements with support department allocations Horton Technology has two divisions. Consumer and Commercial and two corporate support departments, Tech Services and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: ACCT 102 Chapter 24 - Homework assignment take frame Teen Services Department 2770,000 292,000 Purchasing Department Other corporate administrative expenses Total expense The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Services Department allocates costs to the divisions based on the number of computers in the department, and the Purchasing Department allocates costs to the divisions based on the number of purchase orders for each department. The services used by the two divisions are as follows: Consumer Division Commercial Division Total Tech Services $1,519,500 260 410 computers 670 457,000 Purchasing 5,100 purchase orders 1,322,900…
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