1.Regal Furniture Company allocates its indirect salaries of $22,500 on the basis of sales. Determine the indirect salaries allocated to Departments 1 and 2 using the following information.

Department	Sales	Direct Salaries
1	$ 182,000	$ 42,250
2	78,000	22,750
Total	$ 260,000	$ 65,000

2.Supermart provides the following information on its two investment centers.

Investment Center	Sales	Income	Average Assets
Electronics	$ 80,000,000	$ 5,760,000	$ 32,000,000
Sporting Goods	40,000,000	4,080,000	24,000,000

Required: 1. Compute return on investment for each center. 2. Assuming a target income of 12% of average assets, compute residual income for each center.

3. The following data is available for the Janitorial Services Department of Glitterol Company

Revenues	$ 216,000
Cost of Sales	168,000
Expenses:
Supplies	12,000
Share of salary expenses	34,000
Rent	8,000
Share of indirect rent expenses	4,500

Required: Calculate departmental contribution to overhead for the Janitorial Services Department.