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 $8.360 million. Selected data for the two divisions for the most recent year follow: Naval Private Number of Employees 12,480 16,320 Fixed Variable Total Required: What is the cost allocation if fixed payroll costs of $5.660 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. Total Payroll ($000) $ 527,000 413,900 Naval 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 $8.360 million. Selected data for the two divisions for the most recent year follow: Naval Private Number of Employees 12,480 16,320 Fixed Variable Total Required: What is the cost allocation if fixed payroll costs of $5.660 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. Total Payroll ($000) $ 527,000 413,900 Naval 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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