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In divisional income statements prepared for Lemons Company, the Payroll Department costs are allocated to user divisions on the basis of the number of payroli

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In divisional income statements prepared for Lemons Company, the Payroll Department costs are allocated to user divisions on the basis of the number of payroli distributions, and the Purchasing Department costs are allocated on the basis of the number of purchase requisitions. The Payroll Department had costs of $45,552, and the Purchasing Department had expenses of $20,680 The folsowing annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each divisian. b. Using the cost driver information in (a), determine the annual amount of payroll and purchasing costs allocated back to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. Do not round Interim calculations. S. c. Plesidential's service department allocation is than the other two divisions because Residential is a user of service department services. Residential has many employees on a weekly payroll, which translates into a number of check-issuing transactions

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