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a.) Financial Data Salary of vice president of production division 540,000 (3) Salary of supervisor Department M 228,000 (1) Salary of supervisor Department N 168,000
a.) Financial Data Salary of vice president of production division 540,000 (3) Salary of supervisor Department M 228,000 (1) Salary of supervisor Department N 168,000 (2) Direct materials cost Department M 900,000 (1) Direct materials cost Department N 1,260,000 (2) Direct labor cost Department M 720,000 (1) Direct labor cost Department N 2,040,000(2) Direct utilities cost Department M 360,000 (1) Direct utilities cost Department N 72,000 (2) General factorywide utilities 108,000 (3) Production supplies 108,000 (3) Fringe benefits 414,000 (3) Depreciation 2,160,000 (3) Nonfinancial data Machine hours Department M 12,500 Machine hours Department N 2,500 b.) Cost Drivers for the first two -Salary of vice president of production division: effort-based (assume equal across departments) equal to departments M and N, 270,000 ea. Problem 12-2
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