Regal Furniture Company Allocates Its Indirect Salaries of $22,500 on the Basis

question 29

Essay

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.
$$\begin{array} { | l | c | c | c | } \hline & \text { Dept.1 } & \text { Dept.2 } & \text { Combined } \\\hline \text { Revenues from sales........ } & \$ 182,000 & \$ 78,000 & \$ 260,000 \\\hline \text { Direct Salaries............ } & 42,250 & 22,750 & 65,000 \\\hline\end{array}$$ Salaries allocated to Dept. 1 ________
Salaries allocated to Dept. 2 ________

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