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?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 7E: Columbia Products Inc. has two divisions, Salem and Seaside. For the month ended March 31, Salem had...

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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 $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.
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: Number of Employees Wage and Salary Expense ($000) Northern 2,640 $ 210,800 Southern 2,160 129,200 Required: Determine the cost allocation if $12.5 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.
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 $25,000,000 a year. You have the following selected information about the two divisions: Number of Employees Wage and Salary Expense ($000) Northern 2,915 $ 241,800 Southern 2,385 148,200 Required: What is the HR cost that is charged to each division if the number of employees is used as the allocation basis? 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 resources (HR) department. The annual costs of the HR department total $22,000,000 a year. You have the following selected Information about the two divisions: Number of Employees 2,750 2,250 Wage and Salary Expense ($000) $ 223,200 136,800 Northern Southern Required: Determine the cost allocation If $13.5 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. > Answer is complete but not entirely Northern Southern Fixed $ 271,500 $ 13,228,500 Variable 8,479,200 × 5,204,800 Total $ 8,750,700 $ 18,433,300
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 $15,000,000 a year. You have the following selected information about the two divisions: 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? Required A Number of Employees 2,365 1,935 Complete this question by entering your answers in the tabs below. Division Northern Southern Wage and Salary Expense ($000) $ 179,800 110, 200 Required B 40 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. HR Cost
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 $14,000,000 a year. You have the following selected information about the two divisions: 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? Required A Number of Wage and Salary Expense ($000) $ 173,600 106,400 Complete this question by entering your answers in the tabs below. Employees 2,310 1,890 Division Northern Southern 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. Required B HR Cost Required A Required B >…
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Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company's communications network, which are $8,200,000 a year. You have the following information about the two divisions and the common communications network. Air express Ground service Required A Calls (thousands) 581,000 249,000 Required: a. What is the communications network cost that is charged to each division of the number of calls is used as the allocation basis? b. What is the communications network cost to each division using time on network as the allocation basis? Complete this question by entering your answers in the tabs below. Division Air express Ground service Time on Network (hours) Required B 362,500 1,087,500 What is the communications network cost that is charged to each division if the number of calls is used as the allocation basis? (Do not round intermediate calculations.) Network Cost
Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company's communications network, which are $8,400,000 a year. You have the following information about the two divisions and the common communications network. Air express Ground service Calls (thousands) 504,000 216,000 Required: a. What is the communications network cost that is charged to each division if the number of calls is used as the allocation basis? b. What is the communications network cost to each division using time on network as the allocation basis? Complete this question by entering your answers in the tabs below. Required A Required B Division Time on Network (hours) 350,000 1,050,000 What is the communications network cost that is charged to each division if the number of calls is used as the allocation basis? (Do not round intermediate calculations.) Air express Ground service Network Cost
Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and Western. Personnel costs are allocated on the basis of employees and Legal costs are allocated on the basis of hours. A summary of Baldwin operations follows: Employees Hours Department direct costs Costs Personnel Legal Complete this question by entering your answers in the tabs below. Total Personnel $ Personnel $ 10,800 $ 320,000 Required: a. Allocate the cost of the service departments to the operating divisions using the direct method. b. Allocate the cost of the service departments to the operating divisions using the step method. Start with Legal. c. Allocate the cost of the service departments to the operating divisions using the reciprocal method. 320,000 $ 320,000 $ Required A Required B Required C Allocate the cost of the service departments to the operating divisions using the reciprocal method. Note: Do not round intermediate calculations. Round your final answers…
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