Yalland Manufacturing Company makes two different products, M and N. The companys two departments are named after the products; for example, M is made in Department M. Yallands accountant has identified the following annual costs associated with these two products: Financial data Salary of vice president of production division $160,000 Salary of supervisor Department M 80,000 Salary of supervisor Department N 60,000 Direct materials cost Department M 300,000 Direct materials cost Department N 420,000 Direct labor cost Department M 240,000 Direct labor cost Department N 680,000 Direct utilities cost Department M 120,000 Direct utilities cost Department N 24,000 General factory wide utilities 36,000 Production supplies 36,000 Fringe benefits 138,000 Depreciation 600,000 Nonfinancial data Machine hours Department M 5,000 Machine hours Department N 1,000 Required a. Identify the cost that is (1) direct costs of Department M, (2) direct costs of Department N, and (3) indirect costs. Cost Assignment Categories Dept. M Dept. N Indirect Salary of vice president of production division Salary of supervisor Department M Salary of supervisor Department N Direct materials cost Department M Direct materials cost Department N Direct labor cost Department M Direct labor cost Department N Direct utilities cost Department M Direct utilities cost Department N General factory wide utilities Production supplies Fringe benefits Depreciation Total costs b. Select the appropriate cost drivers for the indirect costs and allocated these costs to Department M and N. Cost Base Computation Allocation Rate Salary of VP General utilities Prod. Supplies Fringe benefits Depreciation

4GLT..d 27% 10:03 PM ASSIGNMENT CHAPTER 4 (1) Solo lectura SOLO LECTURA: el formato de este archivo es a Nontinancial data Machine hoursrtment M Machine hours Department N Required 5,000 1,000 Identify the cost that is (1) direct costs of Department M, (2) direct costs of Department N, and 3) indirect costs. a. Cost Assignment Categories Salary of vice president of production division Salary of supervisor Department M Salary of supervisor Department N Direct materials cost Department M Direct materials cost Department N Direct labor cost Department M Direct labor cost Department N Direct utilities cost Department M Direct utilities cost Department N General factory wide utilities Production supplies Fringe benefits Depreciation Dept. M Dept. N Indirect Total costs b. Select the appropriate cost drivers for the indirect costs and allocated these costs to Department M and N Allocation Rate Cost Salary of VP General utilities Prod. Supplies Fringe benefits Depreciation Base Computation