Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold. Gross profit Expenses Advertising Depreciation Equipment Salaries Supplies used Rent Utilities Total expenses Income (loss) Acoustic $ 102,000 43,675 58,325 5,025 10,130 19,700 Required 1 Required 2 Electric $ 83,200 47,250 35,950 4,270 8,520 17,500 2,010 1,790 7,005 6,020 2,995 2,610 46,865 40,710 $ 11,460 $ (4,760) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below.
Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold. Gross profit Expenses Advertising Depreciation Equipment Salaries Supplies used Rent Utilities Total expenses Income (loss) Acoustic $ 102,000 43,675 58,325 5,025 10,130 19,700 Required 1 Required 2 Electric $ 83,200 47,250 35,950 4,270 8,520 17,500 2,010 1,790 7,005 6,020 2,995 2,610 46,865 40,710 $ 11,460 $ (4,760) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please do not give solution in image format thanku
![Required 1 Required 2
Prepare a departmental contribution to overhead report.
Departmental Contribution to Overhead
For Year Ended December 31
Gross profit
Direct expenses
Acoustic
Total direct expenses
Departmental contribution to overhead $
Required 1 Required 2
0
0 $
< Required 1
Electric
Combined
< Required 1
0
0 $
Complete this question by entering your answers in the tabs below.
Required 2 >
Based on contribution to overhead, should the electric guitar department be eliminated?
Based on contribution to overhead, should the electric guitar department be eliminated?
0
0
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01064941-7d1c-4085-8763-119419cfd2f2%2F584d1c65-8388-4e81-9707-451b1f0f7874%2Fzzwrn7l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required 1 Required 2
Prepare a departmental contribution to overhead report.
Departmental Contribution to Overhead
For Year Ended December 31
Gross profit
Direct expenses
Acoustic
Total direct expenses
Departmental contribution to overhead $
Required 1 Required 2
0
0 $
< Required 1
Electric
Combined
< Required 1
0
0 $
Complete this question by entering your answers in the tabs below.
Required 2 >
Based on contribution to overhead, should the electric guitar department be eliminated?
Based on contribution to overhead, should the electric guitar department be eliminated?
0
0
Required 2 >
![Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as
indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss.
Departmental Income Statements
For Year Ended December 31
Sales
Cost of goods sold
Gross profit
Expenses
Advertising
Depreciation Equipment
Salaries
Supplies used
Rent
Utilities
Total expenses
Income (loss)
Acoustic
$ 102,000
43,675
58,325
Required 1 Required 2
5,025
10,130
19,700
2,010
7,005
2,995
46,865
$ 11,460
Electric
$ 83,200
47,250
35,950
4,270
8,520
17,500
1,790
6,020
2,610
40,710
$ (4,760)
1. Prepare a departmental contribution to overhead report
2. Based on contribution to overhead, should the electric guitar department be eliminated?
Complete this question by entering your answers in the tabs below.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01064941-7d1c-4085-8763-119419cfd2f2%2F584d1c65-8388-4e81-9707-451b1f0f7874%2Fymgolsg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as
indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss.
Departmental Income Statements
For Year Ended December 31
Sales
Cost of goods sold
Gross profit
Expenses
Advertising
Depreciation Equipment
Salaries
Supplies used
Rent
Utilities
Total expenses
Income (loss)
Acoustic
$ 102,000
43,675
58,325
Required 1 Required 2
5,025
10,130
19,700
2,010
7,005
2,995
46,865
$ 11,460
Electric
$ 83,200
47,250
35,950
4,270
8,520
17,500
1,790
6,020
2,610
40,710
$ (4,760)
1. Prepare a departmental contribution to overhead report
2. Based on contribution to overhead, should the electric guitar department be eliminated?
Complete this question by entering your answers in the tabs below.
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