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

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