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 $35,512, and the Purchasing Department had expenses of $15,660 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:

		Residential		Commercial		Government Contract
Sales		$327,000		$434,,000		$966,000
Number of employees:
	Weekly payroll (52 weeks per year)	195		60		65
	Monthly payroll	28		39		26
Number of purchase requisitions per year		2,300		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 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. Do not round interim calculations. Round your answers to two decimal places.

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

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

The following data were summarized from the accounting records for Jersey Coast Construction Company for the year ended June 30, 20Y8:

Cost of goods sold:
Commercial Division	$912,000
Residential Division	439,875
Administrative expenses:
Commercial Division	$149,400
Residential Division	129,575
Service department charges:
Commercial Division	$113,760
Residential Division	67,830
Sales:
Commercial Division	$1,364,500
Residential Division	750,060

Prepare divisional income statements for Jersey Coast Construction Company. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.