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 Required A Eastside 25,000 $ 270,000 8,100 $ 99,000 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 the staff cost 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? Required B Westside 6,250 $ 180,000 2,700 $ 81,000 Complete this question by entering your answers in the tabs below. Predetermined overhead rate Total 31,250 $ 450,000 10,800 $ 180,000 $ 270,000 Answer is complete but not entirely correct. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the staff cost to allocate general operating costs. % of staff cost < Required A 9 x Required B >

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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am. 104.

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
$ 270,000
8,100
$ 99,000
Required A Required B
Required:
a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the staff
cost 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?
Westside
6,250
$ 180,000
2,700
$ 81,000
Predetermined overhead rate
Complete this question by entering your answers in the tabs below.
X Answer is complete but not entirely correct.
Total
31,250
$ 450,000
10,800
$ 180,000
$ 270,000
Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the
staff cost to allocate general operating costs.
9
% of staff
cost
< Required A
Required B >
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 Staff hours Staff costs General operating costs Eastside 25,000 $ 270,000 8,100 $ 99,000 Required A Required B Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the staff cost 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? Westside 6,250 $ 180,000 2,700 $ 81,000 Predetermined overhead rate Complete this question by entering your answers in the tabs below. X Answer is complete but not entirely correct. Total 31,250 $ 450,000 10,800 $ 180,000 $ 270,000 Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the staff cost to allocate general operating costs. 9 % of staff cost < Required A Required B >
Required:
a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the staff
cost 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?
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 expected surplus (revenues less costs) for each center?
Center
Westside
Eastside
$
]
$
X Answer is complete but not entirely correct.
Surplus
0x
0X
< Required A
Required B
Transcribed Image Text:Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the staff cost 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? 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 expected surplus (revenues less costs) for each center? Center Westside Eastside $ ] $ X Answer is complete but not entirely correct. Surplus 0x 0X < Required A Required B
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