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Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and...

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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 eliminating its Electric Guitar department because it shows a loss. Electric $ 84,300 47,050 37,250 Departmental Income Statements For Year Ended December 31 Acoustic Sales $ 101,900 Cost of goods sold 45, 375 Gross profit 56,525 Expenses Advertising 5,045 Depreciation-Equipment 10,070 Salaries 19,400 Supplies used 2,000 Rent 7,055 Utilities 2,995 Total expenses 46,565 Income (loss) $ 9,960 4,300 8,530 17,800 1,760 6,040 2,570 41,000 $ (3,750) 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. Required 1 Required 2 Prepare a departmental contribution to overhead report. Departmental Contribution to Overhead For Year Ended December 31 Acoustic Electric Combined $ 101,900 $ 84,300 Sales Cost of goods sold Gross profit Direct expenses Depreciation expense-Equipment Salaries expense Supplies used Total direct expenses 0 0 0 Departmental contribution to overhead $ 0 $ 0 $ 0 Required 1 Required 2 >

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