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 $$86,448,$ and the Purchasing Department had expenses of $$25,960$ for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:Required:

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

Required:

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

b$.$ Using the cost driver information in $($a$),$ determine the annual amount of payroll and purchasing coats allocated to the Residential, Commercial, and Government Contract divisions

from payrall and purchasing servicen. Do not round interim calculations, Round your answers to two decimal places.

Support department allocation rates:

C$.$ Reaidentials support department allocations are

than the other two divisions because Residential is a

user of support department

servicus. Residential has many empleyees on a weekly payrell, which transiates into a

number of perroll trancactions.