In divisional income statements prepared for Demopolis Company,the Payroll Department costs are charged back to user divisions onthe basis of the number of payroll distributions, and thePurchasing Department costs are charged back on the basis of thenumber of purchase requisitions. The Payroll Department hadexpenses 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 fromcorporate records:

	Residential	Commercial	Government Contract
Sales	$2,000,000		$3,250,000		$2,900,000
Number of employees:
	Weekly payroll (52 weeks per year)	400		250		150
	Monthly payroll	80		30		10
Number of purchase requisitions per year	7,500		3,000		2,000

a. Determine the total amount of payroll checksand purchase requisitions processed per year by the company andeach division.

	Residential	Commercial	Government Contract	Total
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 chargedback to the Residential, Commercial, and Government Contractdivisions from payroll and purchasing services. Do not roundinterim calculations. Round your answers to two decimal places.

Service department charge rates:
Payroll Department	$ per payroll check
Purchasing Department	$ per purchase requisition

	Residential	Commercial	Government Contract	Total
Service department charges:
Payroll Department	$	$	$	$
Purchasing Department
Total	$	$	$

c. Residential's service department charge is_______ than the other two divisions because Residential isa   user of service department services. Residentialhas many employees on a weekly payroll, which translates into a________ number of payroll transactions.