College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 25, Problem 2CE
To determine

Ascertain the operating income and operating income percentage for both the departments.

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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…
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 $34,760, and the Purchasing Department had expenses of $15,660 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Sales Number of employees: Weekly payroll (52 weeks per year) Monthly payroll Number of purchase requisitions per year Number of payroll checks: Weekly payroll x 52 Monthly payroll x 12 Total Residential $ 327,000 Support department allocations: Payroll Department Purchasing Department 175 32 2,300 Total Commercial $ 434,000 Required: a. Determine the total amount of payroll checks and purchase requisitions processed per year by the…
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 $61,284, and the Purchasing Department had expenses of $26,400 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:   Residential Commercial Government Contract Sales $ 552,000   $ 731,000   $ 1,679,000   Number of employees:   Weekly payroll (52 weeks per year) 245   60   65     Monthly payroll 30   41   28   Number of purchase requisitions per year 2,500   1,800   1,700   Required: a.  Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.   Residential Commercial…

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College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

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