Reference no: EM13568622

Axe co. has two operating departments supported by a number of service departments. The following information was collected for a recent period:

Direct costs

                                         Dept. A           dept. B        indirect cost

Sale                                   $724404         $356796

Salaries                              $122400         85700           36700

Insurance                           20200            11000            5500

Utilities                                23900            13900            2000

Depreciation                       20700             11500           13800

Maintenance                        7000              4700              29400

Office expenses                     0                    0                  71100

Cogs                                   327600        121200

Indirect costs are allocated as follows: salaries on the basis of sales, office expenses on the basis of the number of employees, and all other costs on the basis of square footage. Additional information about the production departments follows:

                                   Sq. footage       #s of employees

Dept.A                         14535                78

Dept. B                         4845                  52

Determine the departmental contribution to overhead and the departmental net income for each production department.