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Check my work The Personnel Department at Hernandez Bros. is centralized and provides services to the two operating units: Miami and New York. The Miami unit is the original unit of the company and is well established. The New York unit is new, much like a start-up company. The costs of the Personnel Department are allocated to each unit based on the number of employees in order to determine unit profitability. The current rate is $540 per employee. Data for the fiscal year just ended show the following. Number of employees Number of new hires Number of employees departing Miami 1,240 14 16 New York 340 24 26 Required: a. Compute the cost allocated to each unit using the current allocation system, b. Livan, the manager of the Miami unit, is unhappy with the allocation from Personnel. He believes that he gets little benefit other than the occasional hire and termination help. He asks the controller's office to estimate the amount of Personnel Department cost associated with routine personnel matters (benefits, and so on) and those associated with hiring employees and assisting with departing employees (transitions). The controller responds that if they separated the overhead costs on this basis, the rates would be $240 per employee for routine matters and $5,925 for each transition (each hiring and each departure counts as one transition). Recompute the costs allocated to each unit using the separate rates for routine and transitional matters, Recompute the costs allocated to each unit using the separate rates for routine and transitional matters. Total Allocated Cost Miami New York 8. Using current allocation system Using separate rates b Required information Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an average month for the two products follow. Units produced Direct materials cost per unit Machine hours per unit Production runs per month V-1 10, eee $ 2 1 88 V-2 1, $ 4 2 40 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow. Machine depreciation Setup labor Material handling Total $ 60, eee 27,600 16,320 $183,928 Required information (Round your answer to 2 decimal places.) b. Upriver is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine hours for machine depreciation, production runs for setup labor, and direct material dollars for material handling. Compute the cost driver rates for the proposed system at Upriver. (Round "Machine depreciation" answer to 2 decimal places.) b. Overhead rate Machine depreciation Setup labor Material handling per machine hour per machine hour per production run % direct material cost Required information The City Museum (TCM) collects and displays historical artifacts from the local area. One of its services is dedicated tours. TCM offers dedicated tours to two groups: local students and donors. TCM has two coordinators for these tours-one for the student tours and one for the donor tours. Data for the quarter on the two groups follow. Number of visitors Number of tours Student Tours 1,500 75 Donor Tours 750 90 Total 2,250 165 The operational costs associated with the tours have been collected and are presented in the following table. Refreshments, information, and audio guides Tour leaders salaries and benefits Coordinator salaries and benefits (@$29,700 per coordinator) Total $ 27,000 29,700 59,4ee $116, 100 Required: a. TCM currently applies operational costs of the tours to the two types (student and donor) based on the number of visitors. What is the operational cost per visitor based on the costing system currently used? b. TCM is considering adopting an ABC system to evaluate the costs of the two types of tours. If they did so, they would use the following cost drivers: number of visitors for refreshments, information, and audio guides, and number of tours for tour leader salaries and benefits. Compute the cost driver rates for the refreshments, information, and audio guides and tour leaders c. Match each of the three activity-drivers to one of the levels of the cost hierarchy. Complete this question by entering your answers in the tabs below. Required A Required B Required TCM currently applies operational costs of the tours to the two types (student and donor) based on the number of visitors What is the operational cost per visitor based on the costing system currently used? (Round your answer to 2 decimal places.) Overhead rate per visitor TCM is considering adopting an ABC system to evaluate the costs of the two types of tours. If they did so, they would use the Following cost drivers: number of visitors for refreshments, information, and audio guides, and number of tours for tour leader salaries and benefits. Compute the cost driver rates for the refreshments, Information, and audio quides and tour leaders. Cost driver rates efreshments, etc. our guides per visitor per tour Required)