Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are...

Question

Question

Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are cha b. Using the activity base information in (a), determine the annual amount of payroll and purchasing costs charged back to th

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

a]

.	Residential	Commercial	Government contract	Total
No. of payroll checks:
Weekly Payroll [no of employees x 52]	230 * 52 = 11960	60*52 =3120	65*52 =3380
Monthly payroll [no of employees x 12]	38*12 =456	49*12 =588	36*12 =432
Total	12416	3708	3812	19936
No. of purchase requisititon per year	1800	1300	1200	4300

.

b]

.	Cost	Allocation base	Service Department charge rate = cost / Allocation base
Payroll Department	$59808	19936	$3 per payroll distribution
Purchasing Department	$18920	4300	$4.4 per requisition

.

,	Residential	Commercial	Government Contract	Total
Service Department charges:
Payroll Department	3*12416 =$37248	3*3708 =11124	3*3812 =11436	$59808
Purchasing Department	4.4*1800 =$7920	4.4*1300 =$5720	4.4*1200 =5280	$18920
Total	$45168	$16844	$16716	$78728

.

[c]

Residential's service department charge is Higher than the other two divisions because Residential is a Larger user of service department services. Residential has many employees on a weekly payroll, which translates into a More number of check-issuing transactions.

Add a comment

Answer 2

Similar Homework Help Questions

Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are...

Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $82,464, and the Purchasing Department had expenses of $35,990 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate...
Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are...

Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $75,296, and the Purchasing Department had expenses of $39,530 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate...
Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are...

Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $55,692, and the Purchasing Department had expenses of $23,320 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate...

Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are...

Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $60,156, and the Purchasing Department had expenses of $20,680 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate...
Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are...

Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $57,252, and the Purchasing Department had expenses of $22,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate...
Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs...

Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $89,568, and the Purchasing Department had expenses of $27,730 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate...

Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are...

Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $74,544, and the Purchasing Department had expenses of $31,270 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate...
Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are...

Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $28,752, and the Purchasing Department had expenses of $17,690 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate...
Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are...

Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $67,264, and the Purchasing Department had expenses of $33,630 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate...

Service Department Charges in divisional income statements prepared for Lefevre Company, the Payroll Department costs are...

Service Department Charges in divisional income statements prepared for Lefevre Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $69,232, and the Purchasing Department had expenses of $31,270 for the year. The following annual data for Residential Commercial, and Government Contract divisions were obtaine from corporate...

Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are...

Homework Answers

Add Answer to:
Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are...

Post as a guest

Earn Coins