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In divisional income statements prepared for Mills Construction Company, the Payroll Department costs are charged back to user divisions on the basis of the number
In divisional income statements prepared for Mills Construction Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll checks, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $70,096, and the Purchasing Department had expenses of $31,270 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Residential Commercial Government Contract Sales 654,000 $ 866,000 $ 1,989,000 Number of employees: Weekly payroll (52 weeks per year) 175 65 70 Monthly payroll 36 47 34 Number of purchase requisitions per year 2,200 1,600 1,500 a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division Residential Commercial Government Total Contract Number of payroll checks: Weekly payroll Monthly payroll Total Number of purchase requisitions per year
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