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.

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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
Fixed
Variable
Total
Number of Wage and Salary
Expense ($000)
$ 297,600
182,400
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.
$
Employees
3,410
2,790
Northern
0 $
Southern
0
Transcribed Image Text: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 Fixed Variable Total Number of Wage and Salary Expense ($000) $ 297,600 182,400 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. $ Employees 3,410 2,790 Northern 0 $ Southern 0
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