=+13-32 K Common costs OBJECTIVE 4 Brink Ltd and Wallers Ltd are two small clothing companies that are considering leasing a dyeing machine together. The companies estimated that, in order to meet production, Brink Ltd needs the machine for 800 hours and Wallers Ltd needs it for 200 hours.

If each company rents the machine on its own, the fee will be $50 per hour of usage. If they rent the machine together, the fee will decrease to $42 per hour of usage.

Required 1 Calculate Brink Ltd’s and Wallers Ltd’s respective share of fees under the stand-alone cost-allocation method.