3) Levinson Company allocates costs from the payroll department (S1) and the maintenance department (S2) to the molding (P1), finishing (P2), and packaging (P3) departments. Payroll department costs are allocated based on the number of employees in the department and maintenance department costs are allocated based on the number of square feet which the production department occupies within the factory.Information about the departments is presented below:

Department Costs Number of Employees Numer of Square Feet Occupied

Payroll (S1) $140,000 2 2,000

Maintenance (S2) $220,000 8 64,000

Molding (P1) 71 100,000

Finishing (P2) 47 60,000

Packaging (P3) 23 40,000

Levinson uses the direct method to allocate costs. Round all answers to the nearest dollar.

What amount of the payroll department costs will be allocated to the molding department?

2) Ornate Design sells fine collectible art work and has implemented activity-based costing. Costs in the shipping department have been divided into three cost pools. The first cost pool contains costs that are related to packaging and shipping and Rand has determined that the number of boxes shipped is an appropriate cost driver for these costs. The second cost pool is made up of costs related to the final inspection of each item before it is shipped and the cost driver for this pool is the number of individual items that are inspected and shipped. The final cost pool is used for general operations and supervision of the department and the cost driver is the number of shipments. Information about the department is summarized below:

Cost Pool Total Costs Cost Driver Annual Activity

Packaging and shipping $161,400 Number of boxes shipped 23,700 boxes

Final inspection $201,500 Number of individual items shipped 96,100 items

General operations and supervision $82,000 Number of orders 9,600 orders

During the period, the East sales office generated 684 orders for a total of 6,200 items. These orders were shipped in 1,467 boxes. What amount of shipping department costs should be allocated to these sales?