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 $31,000,000 a year. You have the following selected information about the two divisions: Northern Southern Number of Employees 3,245 2,655 Fixed Variable Total Required: Determine the cost allocation if $18.0 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. Wage and Salary Expense ($000) $ 279,000 171,000 Northern Southern
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 $31,000,000 a year. You have the following selected information about the two divisions: Northern Southern Number of Employees 3,245 2,655 Fixed Variable Total Required: Determine the cost allocation if $18.0 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. Wage and Salary Expense ($000) $ 279,000 171,000 Northern Southern
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....
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![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 $31,000,000 a year. You have the following selected
information about the two divisions:
Northern
Southern
Number of
Employees
3,245
2,655
Fixed
Variable
Total
Required:
Determine the cost allocation if $18.0 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.
Wage and Salary
Expense ($000)
$ 279,000
171,000
Northern
Southern](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1eaae1fc-ed33-449b-be0f-97d8c49ba64f%2Faeb11662-36ac-4e9c-9fc2-c2a495b3d48c%2Fan2woif_processed.png&w=3840&q=75)
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 $31,000,000 a year. You have the following selected
information about the two divisions:
Northern
Southern
Number of
Employees
3,245
2,655
Fixed
Variable
Total
Required:
Determine the cost allocation if $18.0 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.
Wage and Salary
Expense ($000)
$ 279,000
171,000
Northern
Southern
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