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Exercise 12-35 (Algo) Alternative Allocation Bases (LO 12-5) Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company's
Exercise 12-35 (Algo) Alternative Allocation Bases (LO 12-5) Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company's human resources (HR) department. The annual costs of the HR department total $27,000,000 a year. You have the following selected information about the two divisions Required: a. What is the HR cost that is charged to each division if the number of employees is used as the allocation basis? b. What is the HR cost that is charged to each division if the wage and salary expense total is used as the allocation basis? Complete this question by entering your answers in the tabs below. What is the HR cost that is charged to each division if the number of employees is used as the allocation basig? Note: Do not round intermediate calculabons. Enter your answers in dollars, not in millons or thousands
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