diaz company is a retail store with two operating departments, clothes and shoes. information follows. for year ended december 31 clothes shoes sales $ 800,000 $ 450,000 cost of goods sold 497,000 291,000 direct expenses: wages 125,000 88,000 supplies used 20,000 10,000 depreciation 28,000 17,000 the company reports the following indirect expenses for the year. indirect expense amount allocation base utilities $ 6,000 square feet of space occupied supervisor salaries 50,000 number of employees in department additional information about the two departments follows. department square footage number of employees clothes 28,000 75 shoes 12,000 50 required: 1. allocate indirect expenses to the two operating departments. 2. prepare departmental income statements.