Cost Department Allocations

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 $65,184, and the Purchasing Department had expenses of $29,480 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:

		Residential		Commercial		Government Contract
Sales		$ 616,000		$ 817,000		$ 1,875,000
Number of employees:
	Weekly payroll (52 weeks per year)	240		75		80
	Monthly payroll	30		41		28
Number of purchase requisitions per year		2,800		2,000		1,900

Required:

a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.

	residential	COMMErical	Government CONTRACT
Number of payroll checks:				Total
Weekly payroll 52	12480	3900	4160
Monthly payroll 12	360	492	336
Total	12840	4392	4496	21728
Number of purchase requisitions per year	2800	2000	1900	6700

b. Using the cost driver information in (a), determine the annual amount of payroll and purchasing costs allocated 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	$fill in the blank 15 per distribution
Purchasing Department	$fill in the blank 16 per requisition

	Residential	Commercial	Government Contract	Total
Support department allocations:
Payroll Department	$fill in the blank 17	$fill in the blank 18	$fill in the blank 19	$fill in the blank 20
Purchasing Department	fill in the blank 21	fill in the blank 22	fill in the blank 23	fill in the blank 24
Total	$fill in the blank 25	$fill in the blank 26	$fill in the blank 27