Question

A company has two divisions. The first division consists of project management and generated $4,523,367 of...

A company has two divisions. The first division consists of project management and generated $4,523,367 of revenue during the year. The second division consists of framing crews that generated $1,080,238 in revenue during the year. Management has decided to allocate the office overhead of $562,256 based on the percentage of the company’s revenues generated by each of the profit centers, with one exception-$8,264 of unallocated labor that will be allocated to the second division. Calculate the overhead allocated to each of the divisions?

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