Gary needs to determine the total costs of his company's tile division and sink division to...

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Gary needs to determine the total costs of his company's tile division and sink division to determine profitability once sales are recognized. The tile division incurs $263,000 in costs, while the sink division incurs $371,000 in costs. Two support departments assist the tile and sink divisions, and they incurred the following costs: Business Services, $79,000, and Maintenance, $51,000. Business Services is used 40% of the time by the tile division, while Maintenance spends 75% of its time helping the sink division. Using the direct method to allocate support department costs, what are the total costs for which the two operating divisions should be held responsible? Operating Departments Tile Total $ 304800 $ Sink Total costs 459200 $ 764000 Gary needs to determine the total costs of his company's tile division and sink division to determine profitability once sales are recognized. The tile division incurs $263,000 in costs, while the sink division incurs $371,000 in costs. Two support departments assist the tile and sink divisions, and they incurred the following costs: Business Services, $79,000, and Maintenance, $51,000. Business Services is used 40% of the time by the tile division, while Maintenance spends 75% of its time helping the sink division. Using the direct method to allocate support department costs, what are the total costs for which the two operating divisions should be held responsible? Operating Departments Tile Total $ 304800 $ Sink Total costs 459200 $ 764000

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To allocate support department costs using the direct method we directly assign the costs of each su... View the full answer