Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are back to user divisions on the basis of the

image text in transcribed
image text in transcribed
Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are 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 $87,024, and the Purchasing Department had expenses of $29,500 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records charged Residential Commercial Government Contract Sales $617,000 $817,000 $1,876,000 Number of employees: Weekly payroll (52 weeks per year) 80 235 75 36 38 49 Monthly payroll Number of purchase 1,400 1,500 2,100 requisitions per year a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. Government Tota Commercial Residential Contract Number of payroll checks: Weekly payroll Monthly payroll Total Number of purchase requisitions per charged back to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. If required, round your answers to two decimal places. Do not round your interim calculations, round year: b. Using the activity base information in (a), determine the annual amount of payroll and purchasing costs your answers to two decimal places, if required. Next Service department charge rates: ueos remaining. and each division. Residential Government Commercial Total Contract 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 ervices. If required, round your answers to two decimal places. Do not round your interim calculations, round your answers to two decimal places, if required Service department charge rates: payroll distribution Payroll Department per requisition Purchasing Department Tota Government Contract Commercial Residential Service department charges: Payroll Department Purchasing Department Total than the other two divisions because c. Residential's service department charge is user of service department services. Residential has many employees on Residential is a number of check-issuing transactions. a weekly payroll, which translates into a Next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions