oter $12$ Management Control Systems

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Exercise $12-42($Algo$)$ Single versus Dual Rates $($LO $12-5,6)$

Dill Shipyards operates a dry dock on the East Coast, where it builds and repairs ships. The company's Payroll Department supports its two divisions, Naval and Private. The Naval division has contracts with the Department of Defense and the Private division works primarily with commercial shippers, specializing in tankers$.$ The annual cost of the Payroll Department is $$8\mathrm{.}320$ million.

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Selected data for the two divisions for the most recent year follow:

$\backslash$table$[[,\backslash$table$[[$Number of$],[$Employees$]],$Total Payroll$],[($$$000),,],[$Naval$,10,880,$$$526,600$