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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 $ and the Purchasing Department had expenses of $ for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:
Residential
Commercial Government
Contract
Sales $ $ $
Number of employees:
Weekly payroll weeks per year
Monthly payroll
Number of purchase
requisitions per year
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
fill in the blank
fill in the blank
Monthly payroll fill in the blank
fill in the blank
fill in the blank
Total fill in the blank
fill in the blank
fill in the blank
fill in the blank
Number of purchase requisitions per year fill in the blank
fill in the blank
fill in the blank
fill in the blank
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
per payroll check
Purchasing Department $fill in the blank
per purchase requisition
Residential Commercial Government Contract Total
Service department charges:
Payroll Department $fill in the blank
$fill in the blank
$fill in the blank
$fill in the blank
Purchasing Department fill in the blank
fill in the blank
fill in the blank
fill in the blank
Total $fill in the blank
$fill in the blank
$fill in the blank
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