Problem $12-120$ points

Griffin Company makes two different products, A and B$.$ The company's two departments are named after the products; for example, Product A is made in Department A and Product B is made in Department B $.$

Griffin's accountant has identified the following annual costs associated with these two products.

Financial Data

REQUIRED

$1.$ Identify the costs that are $(1)$ direct costs of Department $\backslash ($ A $\backslash ),(2)$ direct costs of Department $\backslash ($ B $\backslash ),$ and $(3)$ indirect costs. A three column chart separating Dept A$,$ Dept B and indirect costs with totals is suggested and preferred.

$2.$ Select the appropriate cost drivers for the first two indirect costs listed from the data above and allocate these costs to Departments A and B based on the above breakdown of the resource usage.