In divisional income statements prepared for Brooks Construction Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll checks, and the Purchasing cost are charged back on the basis of the number of purchase requisitions, the Payroll Department had expenses of $84,000 and the Purchasing Department had expenses of $ 40,040 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records

(a) Department the total amount of Payroll checks and purchase requisition processed per year by the company and each division.(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.(c) Why does the Residential Division have a larger service department Charge than the other two divisions, even though its sales arelower?

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Residential Government Contract Commercial $975,000 Sales Number of employees: Weekly payroll (52 weeks per year) Monthly payroll Number of purchase requisitions per year $720,000 $2,240,000 200 100 120 50 50 3,000 80 2,500 2,200