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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

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 $37,128, and the Purchasing Department had expenses of $12,760 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:
Residential
Commercial Government
Contract
Sales $ 267,000 $ 353,000 $ 812,000
Number of employees:
Weekly payroll (52 weeks per year)1558590
Monthly payroll 364734
Number of purchase
requisitions per year 1,9001,3001,200
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 fill in the blank 1
8,060
fill in the blank 2
4,420
fill in the blank 3
4,680
Monthly payroll fill in the blank 4
432
fill in the blank 5
564
fill in the blank 6
408
Total fill in the blank 7
8,492
fill in the blank 8
4,984
fill in the blank 9
5,088
fill in the blank 10
18,564
Number of purchase requisitions per year fill in the blank 11
1,900
fill in the blank 12
1,300
fill in the blank 13
1,200
fill in the blank 14
4,400
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. Do not round your interim calculations, round your answers to two decimal places, if required.
Service department charge rates:
Payroll Department $fill in the blank 15
per payroll check
Purchasing Department $fill in the blank 16
per purchase requisition
Residential Commercial Government Contract Total
Service department charges:
Payroll Department $fill in the blank 17
$fill in the blank 18
$fill in the blank 19
$fill in the blank 20
37,128
Purchasing Department fill in the blank 21
fill in the blank 22
fill in the blank 23
fill in the blank 24
12,760
Total $fill in the blank 25
$fill in the blank 26
$fill in the blank 27

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