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Hamilton Communication Is Determining How to Allocate Costs to Its

Question 116

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Hamilton 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 $60,000 and spends approximately 65% of its time with the carpet division. The Personnel department has costs of $35,000 ad spends approximately 55% of its time with the tile division. If the carpet and tile division incur costs of $180,000 and $360,000, respectively, what are the total costs for each division if the company uses the direct cost method to allocate common costs? (Do not round intermediary calculations, round your final answer to the nearest whole dollar)

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Carpet Division = $180,000 + 6...

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