Reference no: EM13928033

In divisional income statements prepared for Wilborne Construction Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll checks, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $119,280, and the Purchasing Department had expenses of $57,750 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: 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 interim calculations. Service department charge rates: Payroll Department $ per check Purchasing Department $ per requisition Residential Commercial Government Contract Total Service department charges: Payroll Department $ $ $ $ Purchasing Department $ $ $ $ Total $ $ $ c. Residential's service department charge is Selecthigherlower than the other two divisions because Residential is a Selectheavylight user of service department services. Residential has many employees on a weekly payroll, which translates into a Selectlargersmaller number of check-issuing transactions. Check My Work Icon Key Icon Key100% Correct Partially Correct Visited, Not Yet Judged Incorrect Needs Instructor Grading Not Intended for Grading Previous Question 4 of 9 Next Exercise 24-5 Cengage Learning Cengage Technical Support