Medusa Company allocates costs from the payroll department (S1) and the maintenance department (S2) to the molding (p1), finishing (p2), and packaging (p3) departments. Payroll department costs are allocated based on the number of employees in the department and maintenance departments costs are allocated based on the number of square feed which the production department occupies within the factory. inforamation about the department is presented below:
Department cost number of employees number of square feet occupied
payroll (s1) $150,000 2 2,000
maintenance (S2) $220,000 8 64,000
Molding (P1) 61 100,000
Finishing (P2) 46 60,000
Packaging ( P3) 23 40,000
medusa uses the direct method to allocate costs. round all answers to the nearest dollar.
What amount of the payroll department costs will be allocated to the molding department?