Problem 12-1 20 points Wagner Company makes two different products, 1 and 2. The company's two...

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Problem 12-1 20 points Wagner Company makes two different products, 1 and 2. The company's two departments are named after the products; for example, Product 1 is made in Department 1 and Product 2 is made in Department 2. Wagner's accountant has identified the following annual costs associated with these two products. Financial Data Salary of Executive Director of production division Salary of supervisor Department 1 Salary of supervisor Department 2 Direct materials cost Department 1 Direct materials cost Department 2 Direct labor cost Department 1 Direct labor cost Department 2 Direct utilities cost Department 1 Direct utilities cost Department 2 General factorywide utilities Production supplies Fringe benefits Depreciation Nonfinancial data Machine hours Department 1 Machine hours Department 2 260,000 90,000 67.000 250,000 500,000 800,000 1,600,000 1,500,000 1,150,000 400,000 500,000 100,000 900,000 45,000 15,000 REQUIRED 1. Identify the costs that are (1) direct costs of Department 1, (2) direct costs of Department 2, and (3) indirect costs. A three column chart would be one way to do it. 2. Select the appropriate cost drivers for the first two indirect costs listed from the data above and allocate these costs to Departments 1 and 2 based on the above breakdown of the resource usage. Problem 12-1 20 points Wagner Company makes two different products, 1 and 2. The company's two departments are named after the products; for example, Product 1 is made in Department 1 and Product 2 is made in Department 2. Wagner's accountant has identified the following annual costs associated with these two products. Financial Data Salary of Executive Director of production division Salary of supervisor Department 1 Salary of supervisor Department 2 Direct materials cost Department 1 Direct materials cost Department 2 Direct labor cost Department 1 Direct labor cost Department 2 Direct utilities cost Department 1 Direct utilities cost Department 2 General factorywide utilities Production supplies Fringe benefits Depreciation Nonfinancial data Machine hours Department 1 Machine hours Department 2 260,000 90,000 67.000 250,000 500,000 800,000 1,600,000 1,500,000 1,150,000 400,000 500,000 100,000 900,000 45,000 15,000 REQUIRED 1. Identify the costs that are (1) direct costs of Department 1, (2) direct costs of Department 2, and (3) indirect costs. A three column chart would be one way to do it. 2. Select the appropriate cost drivers for the first two indirect costs listed from the data above and allocate these costs to Departments 1 and 2 based on the above breakdown of the resource usage.