ebook Show Me How Service Department Change In divisional income statements prepared for Lefevre Company, the Payroll Dipartiment costs are charged back to w divisions on the basis of the number of payroll distributions, and the Purchasing Department cists are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $77.540, and the purchasing Department had expenses of 531,270 for the year. The following arnaal data for tesidential, Commercial and Government contra dortions were obtained from corporate cords Residential Commercial Government Contract 5654,000 $866,000 $1.989,000 Number of employees Weekly payroll (52 weeks per year 205 75 Monthly payroll 32 Number of purchase requisitions per year 2,200 1,600 1,500 70 43 30 a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division Residential Commercial Government Contract Total Number of payroll checks: Weekly payroll Monthly payroll Total Number of purchase requisitions per Year: ID 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 If required, round your answers to two decimal places. Do not found your interim calculations, round your answers to two decimal places, it required Service department change rates: Payroll Department payroll distribution Purchasing Department per requisition Residential Commercial Government Contract Total Service department chargest Payroll Department Purchasing Department Total c. Residential's service department charge is higher than the other two divisions because Residential is a heavy user of service department services Residential has many employees on a weekly payroll, which translates into a larger number of ched issuing transactions