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 $76,336, and the Purchasing Department had expenses of $33,630 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Residential Commercial Government Contract $703,000 $932,000 $2,139,000 Sales Number of employees: Weekly payroll (52 weeks per year) 175 80 85 36 47 34 Monthly payroll Number of purchase requisitions per year 2,400 1,700 1,600 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. 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 Department payroll distribution Purchasing Department per requisition Residential Commercial Government Contract Total Service department charges: Payroll Department Purchasing Department Total $ than the other two divisions because Residential is a user of service department services. Residential has many employees on c. Residential's service department charge is a weekly payroll, which translates into a number of check-issuing transactions. Return on Investment The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Invested Operations Assets Retail Division $58,900 $310,000 Commercial 59,200 370,000 Division Internet Division 81,200 580,000 a. Compute the return on investment for each di n. (Round to ne nearest number.) Division Percent Retail Division % Commercial Division % Internet Division % b. Which division is the most profitable per dollar invested? Data for Uberto Company are presented in the following table of rates of return on investment and residual incomes: Return on Minimum Residual Invested Assets Income from Operations Minimum Acceptable Income from Operations Investment Return Income $980,000 $225,400 (a) 13% (b) (c) $490,000 (d) (e) $53,900 $24,500 $370,000 (g) 14% (h) $37,000 (0) $280,000 $56,000 () 12% (k) (1) Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number. a. % b. C. $ d. e. % f. % g. h. % i. j. % k
