In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back...
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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 $ and the Purchasing Department had expenses of $ for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:
