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There are two basic activities in the HR Department. The first is employee maintenance (payroll administration, benefits, and so on), which is an ongoing activity and requires the same amount of work for each employee regardless of the employee's salary. The second, called turnover, handles new and departing employees, including all records and orientations (for new employees) and assurance of procedural integrity (for all departures). Virtually all of this activity occurs when employees are hired or leave the company. Assorted data for Exeter for the most recent year follow: Retail 17,660 720 Number of employees (average) Employees hired/leaving The HR Department incurred the following costs during the same year. Employee maintenance Turnover Total Required A Required B $ 4,280,000 4,720,000 $9,000,000 Employee maintenance Turnover Required: a. Under the current allocation system, what are the costs that will be allocated from HR to Retail Division? To Online Division? b. Suppose the company implements an activity-based cost system for HR with the two activities, employee maintenance and turnover. Use the average number of employees as the cost driver for employee maintenance costs and the average number of employees hired or leaving for turnover costs. What are the costs that will be allocated from HR to Retail? To Online? Online Complete this question by entering your answers in the tabs below. Retail Total 20,000 2,360 2,340 1,640 Suppose the company implements an activity-based cost system for HR with the two activities, employee maintenance and turnover. Use the average number of employees as the cost driver for employee maintenance costs and the average number of employees hired or leaving for turnover costs. What are the costs that will be allocated from HR to Retail? To Online? Online Required A RequiredLR

There are two basic activities in the HR Department. The first is employee maintenance (payroll administration, benefits, and so on), which is an ongoing activity and requires the same amount of work for each employee regardless of the employee's salary. The second, called turnover, handles new and departing employees, including all records and orientations (for new employees) and assurance of procedural integrity (for all departures). Virtually all of this activity occurs when employees are hired or leave the company. Assorted data for Exeter for the most recent year follow: Retail 17,660 720 Number of employees (average) Employees hired/leaving The HR Department incurred the following costs during the same year. Employee maintenance Turnover Total Required A Required B $ 4,280,000 4,720,000 $9,000,000 Employee maintenance Turnover Required: a. Under the current allocation system, what are the costs that will be allocated from HR to Retail Division? To Online Division? b. Suppose the company implements an activity-based cost system for HR with the two activities, employee maintenance and turnover. Use the average number of employees as the cost driver for employee maintenance costs and the average number of employees hired or leaving for turnover costs. What are the costs that will be allocated from HR to Retail? To Online? Online Complete this question by entering your answers in the tabs below. Retail Total 20,000 2,360 2,340 1,640 Suppose the company implements an activity-based cost system for HR with the two activities, employee maintenance and turnover. Use the average number of employees as the cost driver for employee maintenance costs and the average number of employees hired or leaving for turnover costs. What are the costs that will be allocated from HR to Retail? To Online? Online Required A RequiredLR

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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K ces There are two basic activities in the HR Department. The first is employee maintenance (payroll administration, benefits, and so on), which is an ongoing activity and requires the same amount of work for each employee regardless of the employee's salary. The second, called turnover, handles new and departing employees, including all records and orientations (for new employees) and assurance of procedural integrity (for all departures). Virtually all of this activity occurs when employees are hired or leave the company. Assorted data for Exeter for the most recent year follow: Retail 17,660 720 Number of employees (average) Employees hired/leaving The HR Department incurred the following costs during the same year. Employee maintenance Turnover Total Required A Required B $ 4,280,000 4,720,000 $ 9,000,000 Required: a. Under the current allocation system, what are the costs that will be allocated from HR to Retail Division? To Online Division? b. Suppose the company implements an activity-based cost system for HR with the tivo activities, employee maintenance and turnover. Use the average number of employees as the cost driver for employee maintenance costs and the average number of employees hired or leaving for turnover costs. What are the costs that will be allocated from HR to Retail? To Online? Employee maintenance Turnover Complete this question by entering your answers in the tabs below. Online 2,340 1,640 Retail Total 20,000 2,360 Suppose the company implements an activity-based cost system for HR with the two activities, employee maintenance and turnover. Use the average number of employees as the cost driver for employee maintenance costs and the average number of employees hired or leaving for turnover costs. What are the costs that will be allocated from HR to Retail? To Online? Online Required A Required
Transcribed Image Text:K ces There are two basic activities in the HR Department. The first is employee maintenance (payroll administration, benefits, and so on), which is an ongoing activity and requires the same amount of work for each employee regardless of the employee's salary. The second, called turnover, handles new and departing employees, including all records and orientations (for new employees) and assurance of procedural integrity (for all departures). Virtually all of this activity occurs when employees are hired or leave the company. Assorted data for Exeter for the most recent year follow: Retail 17,660 720 Number of employees (average) Employees hired/leaving The HR Department incurred the following costs during the same year. Employee maintenance Turnover Total Required A Required B $ 4,280,000 4,720,000 $ 9,000,000 Required: a. Under the current allocation system, what are the costs that will be allocated from HR to Retail Division? To Online Division? b. Suppose the company implements an activity-based cost system for HR with the tivo activities, employee maintenance and turnover. Use the average number of employees as the cost driver for employee maintenance costs and the average number of employees hired or leaving for turnover costs. What are the costs that will be allocated from HR to Retail? To Online? Employee maintenance Turnover Complete this question by entering your answers in the tabs below. Online 2,340 1,640 Retail Total 20,000 2,360 Suppose the company implements an activity-based cost system for HR with the two activities, employee maintenance and turnover. Use the average number of employees as the cost driver for employee maintenance costs and the average number of employees hired or leaving for turnover costs. What are the costs that will be allocated from HR to Retail? To Online? Online Required A Required
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