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 $29,936, and the Purchasing Department had expenses of $17,400 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Residential Commercial Government Contract $364,000 $482,000 $1,107,000 Sales Number of employees: Weekly payroll (52 weeks per year) 120 70 41 75 28 Monthly payroll Number of purchase requisitions per year 2,500 1,800 1,700 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 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 Return on Investment The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Invested Income from Operations Assets Retail Division $77,900 $410,000 Commercial 79,800 380,000 Division Internet Division 121,500 810,000 a. Compute the return on investment for each division. (Round to the nearest whole number.) Division Percent Retail Division % Commercial Division Internet Division b. Which division is the most profitable per dollar invested? Discontinue a Segment Product A has revenue of $194,000, variable cost of goods sold of $113,500, variable selling expenses of $33,000, and fixed costs of $59,600, creating a loss from operations of $12,100. Prepare a differential analysis as of May 9, to determine whether Product A should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Continue Product A (Alt. 1) or Discontinue Product A (Alt. 2) May 9 Continue Product Discontinue Product + Differential Effect on Income A (Alternative 1) A (Alternative 2) (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling expenses Fixed costs Income (Loss) Determine if Product A should be continued (Alternative 1) or discontinued (Alternative 2)