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 $51,228, and the Purchasing Department had expenses of $20,680 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Residential Commercial Government Contract Sales $432,000 $573,000 $1,315,000 Number of employees: Weekly payroll (52 weeks per year) 65 175 60 38 49 36 Monthly payrol Number of purchase requisitions per year 2,000 1,400 1,300 a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. Government Total Residential Commercial Contract Number of payroll checks: Weekly payroll Monthly payroll Total Number of purchase requisitions per Next more Check My Work uses remaining. Check My Work eBook Show Me Hw requisitions per year 2,000 1,300 1,400 a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division Government Residential Total Commercial Contract Number of payroll checks: Weekly payrol EET.AL... 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. 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 per requisition Purchasing Department Government Contract Total Residential Commercial Service department charges: Payroll Department D hina Donatrant Next more Check My Work uses remaining. Check My Work Submit Assignment for Grading All work saved. Email Instructor Save and Exit Exercises & Problems Show Me How Calculator eBook Weekly payroll 24-05.ALGO Monthly payroll .24-10.ALGO Total Number of purchase requisitions per year 24-15.ALGO .24-02.BLANKSHEET.AL... b. Using the activity base information in (a), determine the annual amount 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 Total Government Contract Service department charges Payroll Department Purchasing Department Total c. Residential's service department charge is than the other two divisions because Residential is a user of service department number of check-issuing transactions. services. Residential has many employees on a weekly payroll, which translates into a Next Check My Work 2 more Check My Work uses remaining gress: 1/4 items nment Score: 25 % All work saved. Submit Assignment for Grading Email Instructor Save and Exit
