Dill Shipyards operates a dry dock on the East Coast, where it builds and repairs ships. The company's Payroll Department supports its two divisions, Naval and Private. The Naval division has contracts with the Department of Defense and the Private division works primarily with commercial shippers, specializing in tankers. The annual cost of the Payroll Department is $8.3 million. Selected data for the two divisions for the most recent year follow: Naval Private What is the cost allocation if fixed payroll costs of $5.6 million are allocated on the basis of number of employees and the remaining costs (all variable) are allocated on the basis of total payroll? Note: Enter your answers in dollars, not in millions or thousands. Do not round intermediate calculations. Fixed Variable Total Number of Total Payroll Employees (5000) $ 526,400 413,600 10,080 13,920 $ Naval 0$ Private
Dill Shipyards operates a dry dock on the East Coast, where it builds and repairs ships. The company's Payroll Department supports its two divisions, Naval and Private. The Naval division has contracts with the Department of Defense and the Private division works primarily with commercial shippers, specializing in tankers. The annual cost of the Payroll Department is $8.3 million. Selected data for the two divisions for the most recent year follow: Naval Private What is the cost allocation if fixed payroll costs of $5.6 million are allocated on the basis of number of employees and the remaining costs (all variable) are allocated on the basis of total payroll? Note: Enter your answers in dollars, not in millions or thousands. Do not round intermediate calculations. Fixed Variable Total Number of Total Payroll Employees (5000) $ 526,400 413,600 10,080 13,920 $ Naval 0$ Private
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 6E: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing...
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