Cameron Company has two major segments with the following information:

The Business also has overhead costs as follows: (tables 2)

A) Determine the income of each segment if overhead costs are allocated based on sales revenue.

B. Determine the income of each segment if overhead costs are allocated using activity based cost-drivers.

	East	West	Total
Annual Revenue	$800,000	1,800,000	$2,600,000
Annual Salesperson salaries	600,000	900,000	1,500,000
Number of Customers	50	90	140
Miles Driven	80,000	100,000	180,000

Cost Pool	Cost in Pool	Cost Driver
Travel	8,200	Number of Miles Driven
Entertainment	75,000	Number of Customers
Administrative	750,000	Salaries
Total	$843,200