Exercise 12-36 (Algo) Single versus Dual Rates (LO 12-6)Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company's humanresources (HR) department. The annual costs of the HR department total $34,000,000 a year. You have the following selectedinformation about the two divisions:NorthernSouthernFixedVariableTotalNumber of Wage and SalaryExpense ($000)$ 297,600182,400Required:Determine the cost allocation if $19.5 million of the HR costs are fixed and allocated on the basis of employees, and the remainingcosts, which are variable, are allocated on the basis of the wage and salary expense total.Note: Do not round intermediate calculations. Enter your answers in dollars, not in millions or thousands.$Employees3,4102,790Northern0 $Southern0

Variable costs are costs that varies with the change in the level of output whereas fixed costs are…

Exercise 12-36 (Algo) Single versus Dual Rates (LO 12-6) 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 $34,000,000 a year. You have the following selected information about the two divisions: Northern Southern Number of Wage and Salary Expense ($000) $ 297,600 182,400 Employees 3,410 2,790 Required: Determine the cost allocation if $19.5 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.

Exercise 12-36 (Algo) Single versus Dual Rates (LO 12-6) 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 $34,000,000 a year. You have the following selected information about the two divisions: Northern Southern Number of Wage and Salary Expense ($000) $ 297,600 182,400 Employees 3,410 2,790 Required: Determine the cost allocation if $19.5 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.

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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