acct 390 ch 6 hw q 6

Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. The company is considering using a two-stage cost allocation system and wants to assess the effects on reported product profits. More detalled financial information for HRS follows: The company plans to use Clients to allocate user-related costs and Staff Costs to allocate staff-related costs. Required: a. Compute the predetermined overhead rate used to apply the two general operating costs poois to the two centers (Eastside and Westside) assuming HRS uses the 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