answer in text form please (without image) 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 31Acoustic$ 101,700SalesCost of goods sold45,575Gross profit56,125ExpensesAdvertisingDepreciation-EquipmentSalariesSupplies usedRentUtilitiesTotal expensesIncome (loss)Required 1 Required 21. Prepare a departmental contribution to overhead report.2. Based on contribution to overhead, should the electric guitar department be eliminated?5,01510,06019,8002,0007,0452,97546,895$ 9,230Complete this question by entering your answers in the tabs below.For Year Ended December 31Gross profitDirect expensesPrepare a departmental contribution to overhead report.Departmental Contribution to OverheadTotal direct expensesDepartmental contribution to overheadElectric$ 84,40046,75037,6504,2808,56017,5001,7606,0302,63040,760$ (3,110)Acoustic< Required 1ElectricCombinedRequired 2 >

Name: answer in text form please (without image) Below are departmental inco
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Description: answer in text form please (without image) 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 Guita

Departmental contribution to overhead :Departmental contribution to overhead is the amount of money…

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Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirec expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. For Year Ended December 31 Departmental Income Statements Sales. Cost of goods sold Gross profit Expenses Advertising Depreciation-Equipment Salaries Supplies used Rent Utilities Total expenses Income (loss) Acoustic $ 101,700 45,575 56,125 5,015 10,060 19,800 2,000 7,045 2,975 46,895 $9,230 Electric $ 84,400 46,750 37,650 4,280 8,560 17,500 1,760 6,030 2,630 40,760 $ (3,110) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated?

Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirec expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. For Year Ended December 31 Departmental Income Statements Sales. Cost of goods sold Gross profit Expenses Advertising Depreciation-Equipment Salaries Supplies used Rent Utilities Total expenses Income (loss) Acoustic $ 101,700 45,575 56,125 5,015 10,060 19,800 2,000 7,045 2,975 46,895 $9,230 Electric $ 84,400 46,750 37,650 4,280 8,560 17,500 1,760 6,030 2,630 40,760 $ (3,110) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering ellminsting its Electric Guitar department because it shows a loss. 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) Departmental Income Statements Required 1 Required 2 Acoustic $ 183,300 44,875 58,425 For Year Ended December 31 Direct expenses 4,995 10,000 19,00 1,948 7,895 3,835 46,945 $ 11,488 Total direct expenses Departmental contribution to overhead Electric 1. Prepares 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. Prepare a departmental contribution to overhead report. Departmental Contribution to Overhead Acousto $ 83,400…
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