Regal Furniture Company allocates its indirect salaries of $22,500 on the basis of sales. Determine the indirect salaries allocated to Departments 1 and 2 using the following information. ?Dept.1Dept.2CombinedRevenues from sales........$182,000$78,000$260,000Direct salaries.................42,25022,75065,000Salaries allocated to Dept. 1 ________Salaries allocated to Dept. 2 ________
What will be an ideal response?
Dept.1: ($182,000/$260,000) * $22,500 = $15,750 indirect salaries allocated
Dept.2: ($78,000/$260,000) * $22,500 = $6,750 indirect salaries allocated
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