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Problem 22-4A Departmental contribution to income LO P3 Vortex Com pany operates a retail store...

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Accounting

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Problem 22-4A Departmental contribution to income LO P3 Vortex Com pany operates a retail store with two departments. Information about those departments follows Department A Department B Sales Cost of goods sold Direct expenses $800,000 445,000 $ 450,000 292,500 Salaries Insurance Utilities Depreciation Maintenance 122,000 15,000 23,500 17,500 6,700 83,000 10,500 25,500 12,500 5,500 The company also incurred the following indirect costs Salaries Insurance Depreciation Office expenses $26,000 7,000 15,000 43,000 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 footage 29,400 12,600 Number of employees

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