Cost Department Allocations 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 $50,232, and the Purchasing Department had expenses of $19,360 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Residential $ 405,000 Sales Number of employees: Weekly payroll (52 weeks per year) Monthly payroll Number of purchase requisitions per year 160 36 1,900 Commercial $ 536,000 65 47 1,300 Government Contract $ 1,231,000 70 34 1,200 Required: a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.
Cost Department Allocations 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 $50,232, and the Purchasing Department had expenses of $19,360 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Residential $ 405,000 Sales Number of employees: Weekly payroll (52 weeks per year) Monthly payroll Number of purchase requisitions per year 160 36 1,900 Commercial $ 536,000 65 47 1,300 Government Contract $ 1,231,000 70 34 1,200 Required: a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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