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

Essay

Red Company had the following total cost: $\begin{array}{ll}\text { Direct materials } & \$ 130,000 \\\text { Direct labor } & 90,000 \\\text { Indirect manufacturing } & 80,000\end{array}$ 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.