Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Coat Department Allocations In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to ser divisions on the basis of

image text in transcribed
image text in transcribed
Coat Department Allocations In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to ser divisions on the basis of the number of payroll distributions, and the Purchasing Department conts are charged back on the basis of the number of parchase requisitions. The Pyroll Department had expenses of $28,232, and the Purchasing Department had expenses of $12A70 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records Residential Commercial Government Contract Sales $261,000 $ 345,000 $799,000 Number of employees Weekly payroll (52 weeks per year) 115 65 70 Monthly payroll 28 39 26 Number of purchase requisitions per year 1.800 1,300 1.200 Total Required: a. Determine the total amount of payroll checks and purchase requirition processed per year by the company and each division Residential Commercial Government Contract Number of payroll ches Weekly payroll 52 Monthly payroll 12 Total Number of purchase equitions per year h. Using the cost dhe information in determine the annual amount of and purchase Olocated to the Res dents Commercial and Government Contract b. Using the cost driver information in (a), determine the annual amount of payrols and purchasing costs located to the Residential Commercial and Government Contract divisions from payroll and purchasing services. Do not round interim calculations. Round your answers to two decimal places Support department allocation rates Payroll Department per distribution Purchasing Department per requisition Residential Commercial Government Contract Total Support department allocations: Payroll Department Purchasing Department Tots

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

For Mowen/hansen/heitgers Cornerstones Of Managerial Accounting, 6th Edition, [instant Access]

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

6th Edition

1305280768, 9781305280762

More Books

Students also viewed these Accounting questions

Question

how to write project summery for Wilmot's drone case study

Answered: 1 week ago