6-70. Predetermined Rates and Product Profitability: Two-Stage Cost Allocation Refer to the information in Exercise 6-46 and Problem 6-69. An accounting student from the local college, working on a related project at HRS as a part of a course, suggested a further revision after an analysis of the general operating accounts. Specifically, the student suggested that the stall-ele costs should be separated into two cost pools instead of one. One pool would be allocated based on staff hours and the other pool allocated based on staff costs. The user-related pool would remain as described in Problem 6-69. The general operating costs could be summarized as follows (the information on revenues, users, and staff costs remains as in Problem 6-69). User-related operating costs. Staff hour-related operating costs Staff cost-related operating costs Total general operating costs. Required a Compute the predetermined overhead rate used to apply the three general operating cost pools to the two centers (Eastside and Westside) assuming HRS uses the the student's proposed two-stage cost system to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the surplus (revenues minus costs) for each service? $135,000 108.000 27,000 $270,000

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