Dill Shipyards operates a dry dock on the East Coast, where it bulids 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 $8.3 million. Selected data for the two divisions for the most recent year follow: Required: a. What is the cost charged to each division if Dill allocates Payroll Department costs baswation of employees? b. What is the cost charged to each division if Dill allocates Payroll Department costs basen payroll? c. Contracts with the Defense Department are on a cost-plus fixed fee basis, meaning the price wis besed on the cost of repairing or building the ship, including any overhead assigned to the division. Contracts with commercial shipping comnanies are almost all flxed price, meaning the price does not depend directly on the cost. Will the allocotion base solected affect the amount of revenue? 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, induding any overhead assigned to the division. Contracts with commercial shipping companies are amount of revenue? Dili Shipyards operates a dry dock on the East Coast, where it bullds 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 $8.3million. Selected date for the two divisions for the most recent year follow: Required: a. What is the cost charged to each division in Dill allocates Peyroll Department costs based on the number of employees? b. Whot 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 overheod 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 I What is the cost charged to each division if Dill allocates Pernce the number of employees? Note: Do not round intermediate calculations. Enter your ansic Dill Shipyards operates a dry dock on the East Coast, where it bullds 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 $8,3 million. Selected data for the two divisions for the most recent year follow: Required: a. What is the cost charged to each division 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 almost 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 total payroli? Note: Do not round intermeciate calculations. Enter your answers in dollars, not in millions or thousands
