Service Department Charges 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 $42,328, and the Purchasing Department had expenses of $17.400 for the year. The following annual data for Residential Commercial, and Government Contract divisions were obtained from corporate records: Government Residential Commercial Contract Sales $364,000 $ 482,000 $1,107.000 Number of employees Weekdy payroll (52 weeks per year) 245 65 70 Monthly payroll 36 34 Number of purchase requisitions per year 2,500 1,800 1,700 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 X Monthly payroll X 47 Total Number of purchase requisitions per year b. Using the activity base information in (s), 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 calculation round your answers to two decimal places, required Service department change rates! Previous . Using the activity base Information in (), determine the annual amount of payroll and purchasing costs charged back to the Maddential, Commercial, and Government Contract divisors from payroll and purchasing services. Do not round your interim calculations, round your answers to two decimal placer required. Service department charge rates: Payroll Department per payroll check Purchasing Department per purchase requisition Total Residential Commerdal Government Contract Service department charges Payroll Department Purchasing Department Total c. Residential's service department charge is higher than the other two divisions because Residential is a heavy Residential has many employees on a weekly payroll, which translates into larger number of payroll transactions - user of service department services