Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Complete this question by entering your answers in the tabs below. What is the cost charged to each division if Dill allocates Payroll Department costs

image text in transcribed
image text in transcribed
image text in transcribed
Complete this question by entering your answers in the tabs below. What is the cost charged to each division if Dill allocates Payroll Department costs based on the total payroll? Note: Do not round intermediate calculations. Enter your answers in dollars, not in millions or thousands. 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 $8.4 million. Selected data for the two divisions for the most recent year follow: Required: a. What is the cost charged to each dlvision if Dill allocates Payroll Department costs based on the number of employees? b. What is the cost charged to each division if Dill allocates Payroll Department costs based on the total payroll? c. Contracts with the Defense Department are on a cost-plus fixed fee basis, meaning the price is based on the cost of repairing or building the ship, including any overhead assigned to the division. Contracts with commercial shipping companies are aimost all fixed price, meaning the price does not depend directly on the cost. Will the allocation base selected affect the amount of revenue? Complete this question by entering your answers in the tabs below. What is the cost charged to each division if Dill allocates Payroll Department costs based on the number of employees? Note: Do not round intermediate calculations. Enter your answers in dollars, not in millions or thousands. Complete this question by entering your answers in the tabs below. Contracts with the Defense Department are on a cost-plus fixed fee basis, meaning the price is based on the cost of repairing or building the ship, including any overhead assigned to the division. Contracts with commercial shipping companies are almost all fixed price, meaning the price does not depend directly on the cost. Will the allocation base selected affect the amount of revenue

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mis And Edp Auditing For Accountants And Auditors

Authors: Srv

1st Edition

9993730351, 978-9993730354

More Books

Students also viewed these Accounting questions

Question

Explain basic guidelines for effective multicultural communication.

Answered: 1 week ago

Question

Identify communication barriers and describe ways to remove them.

Answered: 1 week ago

Question

Explain the communication process.

Answered: 1 week ago