Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirectexpenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss.Departmental Income StatementsFor Year Ended December 31SalesCost of goods soldGross profitExpensesAdvertisingDepreciation-EquipmentSalariesSupplies usedRentUtilitiesTotal expensesIncome (loss)Acoustic$ 102,30044,67557,625Required 1 Required 21. Prepare a departmental contribution to overhead report.2. Based on contribution to overhead, should the electric guitar department be eliminated?5,0554,31010,1008,50019,50017,9001,9401,7707,0756,0303,0352,62046,70541,130$ 10,920 $ (3,780)Complete this question by entering your answers in the tabs below.Prepare a departmental contribution to overhead report.For Year Ended December 31Electric$ 84,70047,35037,350Departmental Contribution to OverheadAcousticElectric< PrevCombined2 of 37▬▬▬Next >t Required 1 Required 2Prepare a departmental contribution to overhead report.Departmental Contribution to OverheadFor Year Ended December 31Gross profitDirect expensesTotal direct expensesDepartmental contribution to overheadAcousticRequired 1ElectricCombined+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 $ 102,300 44,675 57,625 5,055 4,310 10,100 8,500 19,500 17,900 1,940 1,770 7,075 6,030 3,035 2,620 46,705 41,130 $ 10,920 $ (3,780) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated? For Year Ended December 31 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a departmental contribution to overhead report. Departmental Contribution to Overhead Electric $ 84,700 47,350 37,350 Acoustic Electric < Prev Co Combined 2 of 37 ‒‒‒ www www Next > se