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Renton Company has two operating (production) departments supported by a number of service departments. Machining Department Assembly Department Sales 724,404 $356,796 Cost of goods sold
Renton Company has two operating (production) departments supported by a number of service departments. Machining Department Assembly Department Sales 724,404 $356,796 Cost of goods sold 327,600 121,200 Direct expenses: Salaries 122,400 85,700 Insurance 20,200 11,000 Utilities 23,900 13,900 Depreciation 20,700 11,500 Maintenance 7,000 4,700 The company has also incurred the following indirect costs. Salaries $36,700 Insurance 5,500 Utilities 2,000 Depreciation 13,800 Maintenance 29,400 Office expenses 71,100 Indirect costs are allocated as follows: salaries on the basis of sales, office expenses on the basis of the number of employees, insurance, utilities, depreciation, and maintenance on the basis of square footage. Additional information about the departments follows: Department Square Footage Number of employees Machining Assembly 14,535 78 4,845 52 What is the indirect expense for Salaries to the Machining Dept
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