1. Based on the below information using Bombay Corp's cost system, calculate the projected operating income for the two product divisions: Goldie and Silver

Bombay Corp is a company that makes hardware. Bombay Corp produces two products: Goldie and Silver which are produced in its own divisions. These two products are manufactured in the same 40,000 square foot facility and share indirect costs. In addition, Bombay Corp allocates indirect costs using direct labor as a cost driver.

The hourly wage for direct labor is $11 and the indirect costs are anticipated to total $750,000

The following are the annual projections for the upcoming year

	Goldie	Silver
Demand (sales)	35,500 units	8600 units
Sales price per unit	$30	$80
Direct materials per unit	$10	$20
Direct labor hours per unit	0.5 hours	1.2 hours