In divisional income statements prepared for Franklin Electrical Company, the Payroll Departments costs are charged back to user divisions on the basis of the number of payroll checks and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll department had of $44,010, and the Purchasing Department had expenses $18,720 the year. The following annual data for Residential, Commercial, and Government Contract Divisions were obtained from corporate records Determine the total amount of payroll checks and requisitions processed per year purchase by each division. Using the activity base information in (a), determine the annual amount of payroll and purchasing costs are charged back to the Residential, Commercial, and Government contract divisions from payroll and purchasing services Why does the Residential Division have a larger service department charge than two divisions, even though its sales are lower?Show transcribed image text In divisional income statements prepared for Franklin Electrical Company, the Payroll Departments costs are charged back to user divisions on the basis of the number of payroll checks and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll department had of $44,010, and the Purchasing Department had expenses $18,720 the year. The following annual data for Residential, Commercial, and Government Contract Divisions were obtained from corporate records Determine the total amount of payroll checks and requisitions processed per year purchase by each division. Using the activity base information in (a), determine the annual amount of payroll and purchasing costs are charged back to the Residential, Commercial, and Government contract divisions from payroll and purchasing services Why does the Residential Division have a larger service department charge than two divisions, even though its sales are lower?
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