Question: help Current Attempt in Progress Pronghorn Communication is determining how to allocate costs to its carpet and tile divisions. The company also has two support

Current Attempt in Progress Pronghorn Communication is determining how to allocate costs to its carpet and tile divisions. The company also has two support departments that assist the divisions. The Maintenance department has costs of $63,000 and spends approximately 65% of its time with the carpet division. The Personnel department has costs of $42,000 ad spends approximately 55% of its time with the tile division. If the carpet and tile division incur costs of $179,000 and $358,000, respectively, what are the total costs for each division if the company uses the direct cost method to allocate common costs? (Do not round the intermediate calculations. Round answers to 0 decimal ploces, es. 5,275.) Attempts: 0 of 1 used Question 7 of 15 View Policies Current Attempt in Progress Pronghorn Company has three support departments and two operating units. Information on the departments is as follows: Operating Unit Cutting 622,000 Assembly 496,000 Using the step method, allocate the support department costs to the operating units. (Do not round the intermediate calculations. Round answers to 0 decimal places, es. 5,275.) Cutting Assembly $ Attempts: 0 of 1 used
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
