1. In divisional income statements prepared for LeFevre 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 $35,800, and the Purchasing Department had expenses of $14,500 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:

   Service Department Charges

   In divisional income statements prepared for LeFevre 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 $35,800, and the Purchasing Department had expenses of $14,500 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:

   		Residential		Commercial		Government Contract
   Sales		$303,000		$402,000		$922,000
   Number of employees:
   	Weekly payroll (52 weeks per year)	185		65		70
   	Monthly payroll	32		43		30
   Number of purchase
   	requisitions per year	2,100		1,500		1,400

   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
   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 Contract divisions from payroll and purchasing services. If required, round your answers to two decimal places. Do not round your interim calculations, round your answers to two decimal places, if required.

   Service department charge rates:
   Payroll Department	$ payroll distribution
   Purchasing Department	$ per requisition

   	Residential	Commercial	Government Contract	Total
   Service department charges:
   Payroll Department	$	$	$	$
   Purchasing Department
   Total	$	$	$

   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
   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 Contract divisions from payroll and purchasing services. If required, round your answers to two decimal places. Do not round your interim calculations, round your answers to two decimal places, if required.

   Service department charge rates:
   Payroll Department	$ payroll distribution
   Purchasing Department	$ per requisition

   	Residential	Commercial	Government Contract	Total
   Service department charges:
   Payroll Department	$	$	$	$
   Purchasing Department
   Total	$	$	$