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In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back...

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Accounting

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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 requlsitions. The Payroll Department had expenses of $84,368, and the Purchasing Department had expenses of $25,370 for the vear. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: b. Using the activity base information in (a), determine the annual amount of payroll and purchasing costs charged back to the fiesidential, Commercial, and Government Contract divisions from payroll and purchasing services. Do not round your interim calculations, round your answers to two decimat places, if required. c. Residential's service department charge is than the other two divisions because Residential is a user of semice department services. Residential has mary employees on a weekly payroll, which translates into a number of payroll transactions

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