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Red Company Had the Following Total Cost  Direct materials $130,000 Direct labor 90,000 Indirect manufacturing 80,000\begin{array}{ll}\text { Direct materials } & \$ 130,000 \\\text { Direct labor } & 90,000 \\\text { Indirect manufacturing } & 80,000\end{array}

Question 181

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Red Company had the following total cost:  Direct materials $130,000 Direct labor 90,000 Indirect manufacturing 80,000\begin{array}{ll}\text { Direct materials } & \$ 130,000 \\\text { Direct labor } & 90,000 \\\text { Indirect manufacturing } & 80,000\end{array} Red has two departments, the Crimson Department and the Rose Department. The Crimson Department incurred 60% of the direct materials cost and 80% of the direct labor cost. Indirect manufacturing costs are assigned in the same proportion as the direct labor cost.
a. Compute the total cost assigned to the Crimson Department.
b. Compute the total cost assigned to the Rose Department.

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a. ($130,000 x 60%) + ($90,000...

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