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

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Service Department Charges In divisional income statements prepared for LeFevre 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 $75,400 and the Purchasing Department had expenses of $42,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Government Residential Commercial Contract $1,000,000 $1,600,000 $3,200,000 Sales Number of employees: Weekly payroll (52 weeks per year) 150 300 75 200 90 160 Monthly payroll Number of purchase requisitions per year 4,000 3,500 3,000 a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. 5:22 PM Home Jsing the activity base information in (a), determine the annual amount of payroll and purchasing costs charged back to the Residential, Commercial, Government Contract divisions from payroll and purchasing services. Do not round interim calculations. vice department charge rates: wroll Department per distribution Tchasing Departments per requisition Residential Commercial Government Contract Total ervice department charges: yroll Department archasing Department tal Residential's service department charge is than the other two divisions because Residential is a ervice department services, Residential has many employees on a weekly payroll, which translates into a ansactions user of number of payroll

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