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 department costs are
allocated based on the number of square feet which the production department occupies within the
factory. Information about the departments is presented below:
Number of Number of Square Department Costs Employees Feet Occupied Payroll (S1) $149,000 2 2,000 Maintenance (S2) $220,000 8 64,000 Molding (P1) 75 100,000 Finishing (P2) 49 60,000 Packaging (P3) 16 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?