Complete this question by entering your answers in the tabs below. Under the current allocation systern, what are the costs that will be allocated from HR to Retail Division? To Online Division? Noter Do not round intermediate calculations and round your answers to the nearest whole dollar Complete this question by entering your answers in the tabs below. Suppose the company implements an activity-based cost system for HR with the two activities, employee mainterance and. turnover. Use the average number of employees as the cost deiver for employee maintenance costs and the average number of employees hired or leaving for furnover costs. What ore the costs that will be allocated from HR to Antail? To Onlings? Exeter Group is a large retail company that has brick-and-mortar outlets throughout the Southeast. They have been in business for many years, but two years ago started an online sales channel to offset slowing in-store sales. The human resources (HR) department at Exeter handies tasks for the two divisions that make up Exeter: Retail and Online. Retail Division manages the company's traditional business line. This business, although still profiable. is currently not growing and may be shrinking slightly, Online Oivision, on the otser hand, has experienced double-diget growth from the beginning The cost allocation system at Exeter allocates all corporate costs to the divisions based on a variety of cost allocation bases. HR costs. are allochted based on the overage number of employees in the two divisions. There are two basic activites in the HR Department. The first is employee maintenance (payroll administration, benefits, and so on) which is an ongoing octivity and requires the same amount of work for each employee regardiess of the employee's salary. The second, called turnoves, handles now and deporting employees, including all records and orientations (for new employees) and assurance of procedural integrity (for all departures). Virtually all of this octivity occurs when employees are hired of leave the company. Assorted dats for Exeter for the most recent year follow. The.HR Department incurred the following costs during the same yeac. Required: a. Under the current allocation system what are the costs that will be allocated from HR to Retall Division? To Online Divsion? b. Suppose the company implements an activity-based cost system for HR with the fwo actwatirs, employee maintenance and furnover. Use the average number of employees as the cost dilver for employee mainenance costs and the avernoe number of
