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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
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 $8.385 million. Selected data for the two divisions for the most recent year follow: Number of Employees 13,480 17,320 Total Payroll ($000) $ 527,250 414,025 Naval Private Required: What is the cost allocation if fixed payroll costs of $5.685 million are allocated on the basis of number of employees and the remaining costs (all variable) are allocated on the basis of total payroll? Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar. Fixed Variable Total Naval Private
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