Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the
Question:
Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow.
Required
a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs.
b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center?
Transcribed Image Text:
1 2 Clients 3 Revenues 4 Staff hours 5 Staff costs A 6 General operating costs 7 B Eastside 25,000 $270,000 8,100 $99,000 C Westside 6,250 $180,000 2,700 $81,000 D Total 31,250 $450,000 10,800 $180,000 $270,000
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a 864 per client b Pre...View the full answer
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