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eBook Show Me How Service Department Charges in divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions

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eBook Show Me How 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 $86,736, and the Purchasing Department had expenses of $35,400 for the year. The following annual data for Residential Commercial, and Government Contract divisions were obtained from corporate records: Government Contract Residential $ 740,000 Commercial $ 981,000 Sales $ 2,251,000 245 70 75 Number of employees Weekly payroll (52 weeks per year) Monthly payroll Number of purchase 36 47 34 requisitions per year 2,500 1,800 1,700 a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division Residential Commercial Government Contract Number of payroll checks: Total 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 Next Check My Work

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