Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Staff hours Staff costs General operating costs Eastside. 25,000 $ 450,000 8,100 $.99,000 Westside 6,250 $ 300,000 2,700 $ 135,000 Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses revenue to allocate general operating costs. b. Based on the rates computed in requirement (a) what is the expected surplus (revenues less costs) for each center? Total 31,250 $750,000 10,800 $ 234,000 $ 450,000 Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses revenue to allocate general operating costs. Predetermined overhead rate % of revenue < Required A Required B >
Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Staff hours Staff costs General operating costs Eastside. 25,000 $ 450,000 8,100 $.99,000 Westside 6,250 $ 300,000 2,700 $ 135,000 Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses revenue to allocate general operating costs. b. Based on the rates computed in requirement (a) what is the expected surplus (revenues less costs) for each center? Total 31,250 $750,000 10,800 $ 234,000 $ 450,000 Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses revenue to allocate general operating costs. Predetermined overhead rate % of revenue < Required A Required B >
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected
operation in the next quarter follow.
Clients
Revenues
Eastside.
25,000
$ 450,000
8,100
$.99,000
Westside
6,250
$300,000
2,700
$ 135,000
Staff hours
Staff costs
General operating costs
Required:
a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses revenue
to allocate general operating costs.
b. Based on the rates computed in requirement (a) what is the expected surplus (revenues less costs) for each center?
Total
31,250
$750,000
10,800
$ 234,000
$ 450,000
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses
revenue to allocate general operating costs.
Predetermined overhead rate
% of revenue
< Required A
Required B >
Transcribed Image Text:Required A Required B
Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center?
Surplus
Center
Westside
Eastside
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