Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company'shuman resources (HR) department. The annual costs of the HR department total $16,000,000 a year. You have the followingselected information about the two divisions:NorthernSouthernNumber ofEmployees2,4201,980FixedVariableTotalRequired:Determine the cost allocation if $10.5 million of the HR costs are fixed and allocated on the basis of employees, and theremaining 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 SalaryExpense ($000)$ 186,000114,000NorthernSouthern

The costs incurred for the production are classified as fixed and variable costs. The fixed costs…

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 $16,000,000 a year. You have the following selected information about the two divisions: Northern Southern Number of Employees 2,420 1,980 Fixed Variable Required: Determine the cost allocation if $10.5 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. Wage and Salary Expense ($000) $ 186,000 114,000 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 $16,000,000 a year. You have the following selected information about the two divisions: Northern Southern Number of Employees 2,420 1,980 Fixed Variable Required: Determine the cost allocation if $10.5 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. Wage and Salary Expense ($000) $ 186,000 114,000 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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