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In divisional income statements prepared for Demopolis Company, the Payreil Department costs are charged back to user divisions on the batis of the number of

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In divisional income statements prepared for Demopolis Company, the Payreil Department costs are charged back to user divisions on the batis of the number of payroil distnicutons, and the Purchasing Department costs are charged back on the basd of the number of purchase requisitions. The Payroll Department had expenses of $31, 405 , and the Purchasing Department had expenses of \$16,530 for the year. The following annuat data tor Residential, Commerclal, and Government Contract divisions were obtained from corporate records: Required: a. Determine the total amount of parroll checks and purchase reguistions processed per year by the cempany and each divisien. Residential's support department allocations are than the other two divisions because Residential is a user of support department services. Residential as many employees on a weekly parroll, which translates into a number of pyyroll transactions. Towk unos a. Add the number of weekly and monthly paryroil checks for each division. Add the number of requations for each division b. Divide the Payrol and Furchasing expenses by the appropriate cost driver from (a). Then apply the rath per cort drver by the actual cheos and requisitions. c. Consider how each department functions within the business: In divisional income statements prepared for Demopolis Company, the Payreil Department costs are charged back to user divisions on the batis of the number of payroil distnicutons, and the Purchasing Department costs are charged back on the basd of the number of purchase requisitions. The Payroll Department had expenses of $31, 405 , and the Purchasing Department had expenses of \$16,530 for the year. The following annuat data tor Residential, Commerclal, and Government Contract divisions were obtained from corporate records: Required: a. Determine the total amount of parroll checks and purchase reguistions processed per year by the cempany and each divisien. Residential's support department allocations are than the other two divisions because Residential is a user of support department services. Residential as many employees on a weekly parroll, which translates into a number of pyyroll transactions. Towk unos a. Add the number of weekly and monthly paryroil checks for each division. Add the number of requations for each division b. Divide the Payrol and Furchasing expenses by the appropriate cost driver from (a). Then apply the rath per cort drver by the actual cheos and requisitions. c. Consider how each department functions within the business

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