10 2 points Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. The company is considering using a two-stage cost allocation system and wants to assess the effects on reported product profits. More detailed financial information for HRS follows: Clients Revenues Staff hours Eastside 25,000 $ 270,000 8,100 $ 99,000 Westside 6,250 $ 180,000 2,700 $ 81,000 Total 31,250 $ 450,000 10,800 eBook Staff costs General operating costs: User-related Print References Staff-related Total general operating costs $ 180,000 $ 135,000 135,000 $ 270,000 The company plans to use Clients to allocate user-related costs and Staff Costs to allocate staff-related costs. An accounting student from the local college working on a related project at HRS as a part of a course, suggested a further revision after an analysis of the general operating accounts. Specifically, the student suggested that the staff-related costs should be separated into two cost pools instead of one. One pool would be allocated based on staff hours and the other pool allocated based on staff costs. The general operating costs could be summarized as follows: User-related operating costs Staff hour-related operating costs Staff cost-related operating cost Total general operating cost Required: $ 135,000 108,000 27,000 $ 270,000 a. Compute the predetermined overhead rate used to apply the three general operating cost pools to the two center (Eastside and Westside) assuming HRS uses the the student's proposed two-stage cost system to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the surplus (revenues minus costs) for each service? Complete this question by entering your answers in the tabs below. Required A Required B Based on the rates computed in requirement (a), what is the surplus (revenues minus costs) for each service? Note: Negative amounts should be indicated by a minus sign. Eastside Westside Surplus 10 2 points Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. The company is considering using a two-stage cost allocation system and wants to assess the effects on reported product profits. More detailed financial information for HRS follows: Clients Revenues Staff hours eBook Staff costs General operating costs: User-related Print References Staff-related Total general operating costs Eastside 25,000 $ 270,000 8,100 $ 99,000 Westside 6,250 $ 180,000 2,700 $ 81,000 Total 31,250 $ 450,000 10,800 $ 180,000 $ 135,000 135,000 $ 270,000 The company plans to use Clients to allocate user-related costs and Staff Costs to allocate staff-related costs. An accounting student from the local college working on a related project at HRS as a part of a course, suggested a further revision after an analysis of the general operating accounts. Specifically, the student suggested that the staff-related costs should be separated into two cost pools instead of one. One pool would be allocated based on staff hours and the other pool allocated based on staff costs. The general operating costs could be summarized as follows: User-related operating costs Staff hour-related operating costs Staff cost-related operating cost Total general operating cost Required: $ 135,000 108,000 27,000 $ 270,000 a. Compute the predetermined overhead rate used to apply the three general operating cost pools to the two center (Eastside and Westside) assuming HRS uses the the student's proposed two-stage cost system to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the surplus (revenues minus costs) for each service? Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rate used to apply the three general operating cost pools to the two center (Eastside and Westside) assuming HRS uses the the student's proposed two-stage cost system to allocate general operating costs. Note: Round your answers to 2 decimal places. User related costs Staff hour-related costs Staff cost-related costs Predetermined Overhead Rate per user per staff-hour % of staff costs