Please answer questions 36-39.

Use the following to answer questions 36-39: LIPARI CORPORATION (17 POINTS) LIPARI Corporation, a decentralized company, has 2 operating divisions, Division A and Division B which operate as investment centers. In addition, they have 3 centralized support departments that provide services to the operation divisions: Purchasing, Payroll and Legal. Purchase department costs are being allocated on the basis of purchase orders, while Payroll department costs are being allocated on the basis of payroll checks issued. Costs associated with the legal department are being assigned using the number of employees. Budgeted and actual cost information for the support departments are as follows: The following budgeted and actual usage information for the operating divisions is as follows: Budgeted Usage: Purchase orders Payroll checks Number of employees 36. The charge rate for each of the support departments will be (include units): ( 6pts ) $ Purchasing $ Payroll $ Legal 37. The amount of purchasing department costs that will be allocated to Division B for performance evaluation purposes will be: ( 3pts) 38. Explain the rationale for allocating budgeted support department costs to users rather than actual costs: (3 pts) 39. The manager of Division B is upset about the amount of Legal costs being allocated to his division. He feels that amount being allocated to his division is too high. Is he right? Yes or No and WHY? (5 pts) Note: Regardless of your answer, you MUST explain WHY this is the case. COMPUTATION AREA