Exercise 12-42 (Algo) Single versus Dual Rates (LO 12-5, 6) Dill Shipyards operates a dry dock on the East Coast, where it builds and repairs ships. The company's Payroll Department supports it 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 $8.370 million. Selected data for the two divisions for the most recent year follow: Naval Private Number of Employees 12,880 16,720 Total Payroll ($000) $ 527,100 413,950 Required: What is the cost allocation if fixed payroll costs of $5.670 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: Do not round intermediate calculations. Round your answers to the nearest whole dollar.

Exercise 12-42 (Algo) Single versus Dual Rates (LO 12-5, 6) Dill Shipyards operates a dry dock on the East Coast, where it builds and repairs ships. The company's Payroll Department supports it 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 $8.370 million. Selected data for the two divisions for the most recent year follow: Naval Private Number of Employees 12,880 16,720 Total Payroll ($000) $ 527,100 413,950 Required: What is the cost allocation if fixed payroll costs of $5.670 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: Do not round intermediate calculations. Round your answers to the nearest whole dollar.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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am. 116.
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EX25-15
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