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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 $78,128, and the Purchasing Department had expenses of $27,730 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Government Contract Residential Commercial Sales $ 580,000 $ 768,000 $ 1,764,000 Number of employees: 225 60 65 Weekly payroll (52 weeks per year) Monthly payroll Number of purchase 34 45 32 requisitions per year 2,000 1,400 1,300 a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each 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 charged back to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. Do not round your interim calculations, round your answers to two decimal places, if required. Service department charge rates: Payroll Department per payroll check Purchasing Department per purchase requisition Residential Commercial Government Contract Total Service department charges: Payroll Department IN Purchasing Department Total

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