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Vortex Company operates a retail store with two departments. Information about those departments follows.

	Department A			Department B
Sales	$	832,000		$	448,000
Cost of goods sold		410,000			291,200
Direct expenses
Salaries		120,000			84,000
Insurance		19,500			10,800
Utilities		25,000			29,000
Depreciation		17,000			12,500
Maintenance		6,500			5,800

The company also incurred the following indirect costs.

Salaries	$26,000
Insurance	7,200
Depreciation	14,600
Office expenses	44,000

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	Number of employees
A	30,100	72
B	12,900	48

Required 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department B. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) VORTEX COMPANY Departmental Contribution Statements Department A Department B $832,00448,000 291,200 156,800 ost of goods sold ross profit Direct expenses 410,000 422,000 nsurance epreciation aintenance Total direct expenses tmental contributions to overhead Allocated indirect expenses nsurance epreciation Total indirect expenses Operating income (loss)

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