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 $$71,424,$ and the Purchasing Department had expenses of $$37,760$ for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:

Line Item Description Residential Commercial Government Contract

Sales $$789,000$ $$1,046,000$ $$2,402,000$

Number of employees:

Weekly payroll $(52$ weeks per year$)1508085$

Monthly payroll $384936$

Number of purchase requisitions per year $2,7001,9001,800$

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

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

Line Item Description Residential Commercial Government Contract Total

Number of payroll checks:

Weekly payroll $\backslash$times $52$ fill in the blank $2$

fill in the blank $3$

fill in the blank $4$

Monthly payroll $\backslash$times $12$ fill in the blank $5$

fill in the blank $6$

fill in the blank $7$

Total fill in the blank $8$

fill in the blank $9$

fill in the blank $10$

fill in the blank $11$

Number of purchase requisitions per year fill in the blank $12$

fill in the blank $13$

fill in the blank $14$

fill in the blank $15$

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:

Department Allocation Rate

Payroll Department $fill in the blank $16$

per distribution

Purchasing Department $fill in the blank $17$

per requisition

Department Residential Commercial Government Contract Total

Support department allocations:

Payroll Department $fill in the blank $18$

$fill in the blank $19$

$fill in the blank $20$

$fill in the blank $21$

Purchasing Department fill in the blank $22$

fill in the blank $23$

fill in the blank $24$

fill in the blank $25$

Total $fill in the blank $26$

$fill in the blank $27$

$fill in the blank $28$

c$.$ Residential's support department allocations are fill in the blank $1$ of $3$

than the other two divisions because Residential is a fill in the blank $2$ of $3$

user of support department services. Residential has many employees on a weekly payroll, which translates into a fill in the blank $3$ of $3$

number of payroll transactions.