Dartford Company reported the following financial data for one of its divisions for the year; average investment center total assets of $3,500,000; investment center income $610,000; a target income of 12% of average invested assets. The residual income for the division is:

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 $90,784, and the Purchasing Department had expenses of $31,270 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:   Residential Commercial GovernmentContract Sales $ 654,000   $ 866,000   $ 1,989,000   Number of employees:   Weekly payroll (52 weeks per year) 250   80   85     Monthly payroll 28   39   26   Number of purchase               requisitions per year 2,200   1,600   1,500   a.  Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.   Residential Commercial Government Contract…

The vice president of operations of Scott Hall and Associates is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows: Category Road Bike Division Mountain Bike Division Sales $1,750,000 $1,810,000 Cost of goods sold 1,300,000 1,440,000 Operating expenses 202,000 236,800 Invested assets 1,400,000 800,000     Prepare condensed divisional income statements for the year ended December 31, 2021, assuming that there were no service department charges.  Using the DuPont formula for return on investment, determine the profit margin percentage, investment turnover, and return on investment for each division. (Round percentages and the investment turnover to two places behind the decimal.)  If management’s minimum acceptable return on investment is 10%, determine the residual income for each division.  In your own words…

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 $51,792, and the Purchasing Department had expenses of $22,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:   Residential Commercial GovernmentContract Sales $ 460,000   $ 609,000   $ 1,399,000   Number of employees:   Weekly payroll (52 weeks per year) 170   65   70     Monthly payroll 36   47   34   Number of purchase               requisitions per year 2,100   1,500   1,400   a.  Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.   Residential Commercial Government Contract…

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 $63,568, and the Purchasing Department had expenses of $25,370 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Government Residential Commercial Contract Sales $530,000 $703,000 $1,614,000 Number of employees: Weekly payroll (52 weeks per year) 145 65 70 Monthly payroll 34 45 32 Number of purchase requisitions per year 1,800 1,300 1,200 a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. Government Residential Commercial Total Contract Number of payroll checks: Weekly payroll Monthly payroll Total…

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 $77,376, and the Purchasing Department had expenses of $39,530 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:   Residential Commercial GovernmentContract Sales $ 826,000   $ 1,095,000   $ 2,514,000   Number of employees:   Weekly payroll (52 weeks per year) 220   60   65     Monthly payroll 36   47   34   Number of purchase               requisitions per year 2,800   2,000   1,900   a.  Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.   Residential…