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Service Department Charges In divisional income statements prepared for Demopolis Company, the Payroll Department costs are cNumber of purchase 2,000 requisitions per year 1,400 1,300 a. Determine the total amount of payroll checks and purchase requi

Service Department Charges In divisional income statements prepared for Demopolis 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 $70,272, 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 records Government Contract $1,764,000 Residential Commercial 580,000 768,000 Sales Number of employees 160 Weekly payroll (52 weeks per year) 75 80 Monthly payroll 30 28 Number of purchase 2,000 1,400 1,300 requisitions per year a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division Total Residential Commercial Government Contract Number of payroll checks Weekly payroll Monthly payroll Total Number of purchase requisitions per year b. Using the activity base information in (a), determine the annual amount of payroll and purchasing costs charged back to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. Do not round your interim calculations, round your answers to two decimal places, if required Service department charge rates:
Number of purchase 2,000 requisitions per year 1,400 1,300 a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division Total Residential Commercial Government Contract Number of payroll checks Weekly payroll Monthly payroll Total Number of purchase requisitions per year b. Using the activity base information in (a), determine the annual amount of payroll and purchasing costs charged back to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. Do not round your interim calculations, round your answers to two decimal places, if required Service department charge rates Payroll Department Purchasing Department per payroll check per purchase requisition Total Residential Commercial Government Contract Service department charges Payroll Department Purchasing Department Total c. Residential's service department charge is higher than the other two divisions because Residential is a heavyuser of service department services. Residential has many employees on a weekly payroll, which translates into a largernumber of payroll transactions
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