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

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answerhappygod
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In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user di

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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 requisitions. The Payroll Department had
expenses of $46,248, and the Purchasing Department had expenses of
$18,920 for the year. The following 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 Residential, Commercial, and Government Contract
divisions from payroll and purchasing services. Do not round
interim calculations. Round your answers to two decimal places.
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