Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company's human esources (HR) department. The annual costs of the HR department total $20,000,000 a year. You have the following selected nformation about the two divisions: Number of Employees 2,640 2,160 Wage and Salary Expense ($000) $210,800 129,200 Northern Southern 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?
Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company's human esources (HR) department. The annual costs of the HR department total $20,000,000 a year. You have the following selected nformation about the two divisions: Number of Employees 2,640 2,160 Wage and Salary Expense ($000) $210,800 129,200 Northern Southern 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 $20,000,000 a year. You have the following selected
Information about the two divisions:
Northern
Southern
Number of
Employees
2,640
2,160
Wage and Salary
Expense ($000)
$ 210,800
129,200
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?
Complete this question by entering your answers in the tabs below.
Required A
Required B
What is the HR cost that is charged to each division if the number of employees is used as
the allocation basis?
Note: Do not round intermediate calculations. Enter your answers in dollars, not in millions or
thousands.
Division
HR Cost
Northern
Southern
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