Service Department Clarges In divisional income statements prepared for fguana Construction Company, the Payroll Department costs are charged back to user divisions on the basir of the number of payroll checks, and the Purchasing Departmant costs are charged back on the bas is of the number of purchase requisitions. The Payroll Desartment had expenses of 561,500 , and the Purchasing Department had expenses of $23,760 for the year. The following annual data for the Residential, Commercial, and Government Contract divisions were obtained from corporate recordst b. Using the activty base informatien in (a). determine the annual amount of payroll and purchaning costa charged back to the Residential, Commercial, and Government Contract divitions from payrell and burchasing services. Round charge rate answers to nearest cent. c. Why does the Residemial Divisen have a laroer nervice dosartment charge than the other tore divisions