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 detailed financial information for HRS follows

The company plans to use Clients to allocate user$-$related costs and Staff Costs to allocate staff$-$related costs.

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 staff$-$related costs should be separated

into two cost pools instead of one. One pool puould be allocated based on staff hours and the other pool allocated based on staff costs.

The general operating costs could be summarized as follows:

User$-$related operating costs

Staff hour$-$related operating costs

Staff cost$-$related operating cost

Total general operating cost