In divisional income statements prepared for LeFevre 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 $75,400 and the Purchasing Department had expenses of $42,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Government Residential Commercial Contract Sales $1,000,000 $1,600,000 $3,200,000 Number of employees: Weekly payroll (52 weeks per year) 300 150 200 Monthly payroll 75 160 90 Number of purchase requisitions per 4,000 3,500 3,000 year 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 payrol 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 distribution Purchasing Department per requisition Residential Commercial Government Contract Total Service department charges: Payroll Department Purchasing Department Total
In divisional income statements prepared for LeFevre 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 $75,400 and the Purchasing Department had expenses of $42,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Government Residential Commercial Contract Sales $1,000,000 $1,600,000 $3,200,000 Number of employees: Weekly payroll (52 weeks per year) 300 150 200 Monthly payroll 75 160 90 Number of purchase requisitions per 4,000 3,500 3,000 year 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 payrol 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 distribution Purchasing Department per requisition Residential Commercial Government Contract Total Service department charges: Payroll Department Purchasing Department Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Service Department Charges
In divisional income statements prepared for LeFevre 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 $75,400 and the Purchasing Department had expenses of $42,000 for the year. The following annual data for Residential, Commercial, and Government Contract
divisions were obtained from corporate records:
Government
Residential Commercial
Contract
Sales
$1,000,000 $1,600,000
$3,200,000
Number of employees:
Weekly payroll (52 weeks per year)
300
150
200
Monthly payroll
75
160
90
Number of purchase requisitions per
4,000
3,500
3,000
year
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 distribution
Purchasing Department
per requisition
Residential
Commercial
Government Contract
Total
Service department charges:
Payroll Department
Purchasing Department
Total
bich tranclates into a
C](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc1258925-704c-49f6-88fd-83b55622fb54%2F9080e141-daa1-438d-9015-899db19e31a6%2F4bp7y1k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Session Ex X
Programs
Public Admi X
G public admin X
how much d X
Bb Pearson's M X
My Questior X
Bb] Cengage-/ X
CengageNO X +
engagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress%3Dfalse
Q ☆
YouTube
Maps
GE News
Translate
O Q Moral Choices Tes...
CengageNOWv2 |...
Bb Home Page PSY...
8.5" x 14" Tri-fold...
eBook
Show Me How
Service Department Charges
In divisional income statements prepared for LeFevre 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 $75,400 and the Purchasing Department had expenses of $42,000 for the year. The following annual data for Residential, Commercial, and Government Contract
divisions were obtained from corporate records:
Government
Residential Commercial
Contract
Sales
$1,000,000 $1,600,000
$3,200,000
Number of employees:
Weekly payroll (52 weeks per year)
300
150
200
Monthly payroll
75
160
90
Number of purchase requisitions per
4,000
3,500
3,000
year
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 distribution
Purchasing Department
per requisition
Residential
Commercial
Government Contract
Total
Service department charges:
Payroll Department
Purchasing Department
Total
bich tranclates into a
C
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