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Performance Eval

Performance Eval

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Performance Eval - Decentralized Ops: The pictures contain all the information. Thanks!

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. Support department allocation rates: Payroll Department per distribution Purchasing Department per requisition Residential Commercial Government Contract Total Support department allocations: Payroll Department Purchasing Department Total $ $
Transcribed Image Text: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. Support department allocation rates: Payroll Department per distribution Purchasing Department per requisition Residential Commercial Government Contract Total Support department allocations: Payroll Department Purchasing Department Total $ $
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 $39,728, and the Purchasing Department had expenses of $13,630 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Residential Commercial Government Contract Sales $ 285,000 $ 378,000 $ 867,000 Number of employees: Weekly payroll (52 weeks per year) 210 70 75 Monthly payroll 36 47 34 Number of purchase requisitions per year 2,000 1,400 1,300 Required: 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 x 52 Monthly payroll x 12 Total Number of purchase requisitions per year
Transcribed Image Text: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 $39,728, and the Purchasing Department had expenses of $13,630 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Residential Commercial Government Contract Sales $ 285,000 $ 378,000 $ 867,000 Number of employees: Weekly payroll (52 weeks per year) 210 70 75 Monthly payroll 36 47 34 Number of purchase requisitions per year 2,000 1,400 1,300 Required: 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 x 52 Monthly payroll x 12 Total Number of purchase requisitions per year
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The word 'payroll' could allude to a firm's employees as well as details on them. It could also allude to the quantity of money that the employer is paying its employees. We frequently use the word while discussing the procedure of computing workers' compensation and taxes.

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