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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%
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.
Transcribed Image Text: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.
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Segment Reporting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education