cost accounting

Dill Shipyards operates a dry dock on the East Coast, where it builds and repalis 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 $8.315 million. Selected data for the two divisions for the most recent yeat follow: Required: What is the cost allocation if fixed payroll costs of $5.615 million are allocated on the basis of number of employces and the remaining costs (all variable) are allocated on the basis of total payroll? Note: Do not round intermediate colculations. Round your answers to the nearest whole dollar