Service Department Charges In divisional income statements prepared for Iguana 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 $42,750, and the Purchasing Department had expenses of $87,600 for the year. The following annual data for the Residential, Commercial, and Government Contract divisions were obtained from corporate records: Government Contract Residential Commercial Sales $9,400,000 $6,800,000 $2,400,000 80 60 25 Number of employees: Weekly payroll (52 weeks per year) Monthly payroll Number of purchase requisitions per year 20 10 5 12,400 8,900 2,700 a. Determine the total amount of payroll checks and purchase requisitions processed per year by 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. Round charge rate answers to nearest cent. Service department charge rates: Payroll Department per check Purchasing Department per requisition Residential Commercial Government Contract Total Service department charges: Payroll Department Purchasing Department $ od III Total $