Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company's human esources (HR) department. The annual costs of the HR department total $20,000,000 a year. You have the following selected nformation about the two divisions: Number of Employees 2,640 2,160 Wage and Salary Expense ($000) $210,800 129,200 Northern Southern Required: a. What is the HR cost that is charged to each division If the number of employees is used as the allocation basis? b. What Is the HR cost that is charged to each division If the wage and salary expense total is used as the allocation basis?

Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company's human esources (HR) department. The annual costs of the HR department total $20,000,000 a year. You have the following selected nformation about the two divisions: Number of Employees 2,640 2,160 Wage and Salary Expense ($000) $210,800 129,200 Northern Southern Required: a. What is the HR cost that is charged to each division If the number of employees is used as the allocation basis? b. What Is the HR cost that is charged to each division If the wage and salary expense total is used as the allocation basis?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company’s human resources (HR) department. The annual costs of the HR department total $20,000,000 a year. You have the following selected information about the two divisions: Number of Employees Wage and Salary Expense ($000) Northern 2,640 $ 210,800 Southern 2,160 129,200 Required: Determine the cost allocation if $12.5 million of the HR costs are fixed and allocated on the basis of employees, and the remaining costs, which are variable, are allocated on the basis of the wage and salary expense total. Note: Do not round intermediate calculations. Enter your answers in dollars, not in millions or thousands.
Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company's human resources (HR) department. The annual costs of the HR department total $33,000,000 a year. You have the following selected information about the two divisions: Northern Southern Number of Employees 3,355 2,745 Required: a. What is the HR cost that is charged to each division if the number of employees is used as the allocation basis? b. What is the HR cost that is charged to each division if the wage and salary expense total is used as the allocation basis? Required A Wage and Salary Expense ($000) $ 291,400 178,600 Complete this question by entering your answers in the tabs below. Required B What is the HR cost that is charged to each division if the wage and salary expense total is used as the allocation basis? Note: Do not round intermediate calculations. Enter your answers in dollars, not in millions or thousands.
Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company's human resources (HR) department. The annual costs of the HR department total $22,000,000 a year. You have the following selected Information about the two divisions: Number of Employees 2,750 2,250 Wage and Salary Expense ($000) $ 223,200 136,800 Northern Southern Required: Determine the cost allocation If $13.5 million of the HR costs are fixed and allocated on the basis of employees, and the remaining costs, which are variable, are allocated on the basis of the wage and salary expense total. Note: Do not round intermediate calculations. Enter your answers In dollars, not in millions or thousands. > Answer is complete but not entirely Northern Southern Fixed $ 271,500 $ 13,228,500 Variable 8,479,200 × 5,204,800 Total $ 8,750,700 $ 18,433,300
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