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thank you Service Department Charges In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the
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Service Department Charges In divisional income statements prepared for Demopolis 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 $64,560, and the Purchasing Department had expenses of $40,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records Residentia Commercial Government Contract Sales $2,000,000 $3,250,000 $2,900,000 Number of employees: 400 80 7,500 250 30 3,000 150 10 2,000 Weekly payroll (52 weeks per year) Monthly payroll Number of purchase requisitions per year a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division Total Residential Commercial Government Contract 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. Do not round interim calculations. Round your answers to two decimal places. Service department charge rates: Payroll Department Purchasing Department per payroll check per purchase requisition Residential Commercial Total Government Contract Service department charges: Payroll Department Purchasing Department TotalStep by Step Solution
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