Eclectic Furniture Company Allocates Its Indirect Salaries of $12,500 on the Basis

question 52

Essay

Eclectic Furniture Company allocates its indirect salaries of $12,500 on the basis of sales.Determine the indirect salaries allocated to Departments 1 and 2 using the following information:

$\begin{array} { l r r r } & \underline{ \text { Dept. I } }& \underline {\text { Dept. 2 } }& \underline {\text { Combined } } \\\text { Revenues from sales } & \$ 182,000 & \$ 78,000 & \$ 260,000 \\ \text { Direct salaries }&42,250 & 22,750 & 65,000 \end{array}$ Salaries allocated Dept.1 _______________
Salaries allocated to Dept.2 _______________

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