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Dill Shipyards operates a dry dock on the East Coast, where It bullds and repairs ships. The company's Payroll Department supports its two dlvislons, Naval and Private. The Naval dlvision has contracts with the Department of Defense and the Prlvate dlvislon works primarily with commerclal shippers, specializing In tankers. The annual cost of the Payroll Department 15$8.3million. Selected data for the two divisions for the most recent year follow: Required: a. What is the cost charged to each division if Dill allocates Payroll Department costs based on the number of employees? b. What is the cost charged to each dlvision if Dill allocates Payroll Department costs based on the total payroll? c. Contracts with the Defense Department are on a cost-plus fixed fee basis, meaning the price is based on the cost of repalring or buliding the ship, Including any overhead assigned to the dlvision. Contracts with commerclal shipping companles are almost all fixed price, meaning the price does not depend directly on the cost. Will the allocation base selected affect the amount of revenue? Complete this question by entering your answers in the tabs below. What is the cost charged to each division if Dill allocates Payroll Department costs based on the number of employees? Note: Do not round intermediate calculations, Enter your answers in dollars, not in milions or thousands

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