90.2K

Verified Solution

Link Copied!

Cost vepertment Alocations 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 distributians, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $64,784, and the Purchasing Department had expenses of $37,760 for the year. The foliowing annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Required: a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. b. Using the cost driver information in (a), determine the annual amount of payroll and purchasing costs allocated to the Pesidential, Commercial, and Government Contract divisions from paytoll and purchasing services. Do not round interim calculations. Hound your answers to two decimal places. Support department allocabion rates: Pavroll Denartment oer distribution b. Using the cost driver information in (a), determine the annual amount of payroll and purchasing costs atiocated 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. Support department allocation rates: c. Residential's support department allocations are than the other two divisions because Residential is a. user of support department services. Residential has many employees on a weekty payroll, which translates into a number of payroll transactions

Answer & Explanation Solved by verified expert

See Answer