Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental incomestatements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses.GARCIA COMPANYDepartmental Income StatementsFor Year Ended December 31SalesCost of goods soldGross profitExpensesSales salariesSupplies usedDepreciation-EquipmentRentUtilitiesShare of office department expensesTotal expensesIncomePhoneEarbudsCombined$ 200,00098,000$ 95,000$ 295,00058,900102,00036,100156,900138,10020,0008,70028,7001,1504501,6002,1003002,4007,0603,84010,9002,7001,8004,50010,5004,50043,51019,590$ 58,490$ 16,51015,00063,100$ 75,000Required:Prepare a departmental contribution to overhead report.Garcia CompanyDepartmental Contribution to OverheadFor Year Ended December 31Gross profitDirect expensesPhoneEarbudsCombined000Total direct expenses000Departmental contribution to overhead$0 $0$0

Overhead Report -Businesses must pay predetermined monthly and annual expenses, which are thoroughly…

Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expense Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment Rent Utilities GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Share of office department expenses Total expenses Income Phone $ 200,000 Earbuds Combined $ 95,000 98,000 58,900 $ 295,000 156,900 102,000 36,100 138,100 20,000 8,700 28,700 1,150 450 1,600 2,100 300 2,400 7,060 3,840 10,900 2,700 1,800 4,500 10,500 4,500 43,510 19,590 63,100 $ 58,490 $ 16,510 $ 75,000 15,000

Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expense Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment Rent Utilities GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Share of office department expenses Total expenses Income Phone $ 200,000 Earbuds Combined $ 95,000 98,000 58,900 $ 295,000 156,900 102,000 36,100 138,100 20,000 8,700 28,700 1,150 450 1,600 2,100 300 2,400 7,060 3,840 10,900 2,700 1,800 4,500 10,500 4,500 43,510 19,590 63,100 $ 58,490 $ 16,510 $ 75,000 15,000

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 9SPB

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Please help with this accounting question
What is the company's net operating income on these general accounting question?
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