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Harmon Recycling Services (HRS), a not-for-profit organcaton, has two drop-off centers, Westside and Eostsido. The compary is considering using a two-stage cost allocation system and

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Harmon Recycling Services (HRS), a not-for-profit organcaton, has two drop-off centers, Westside and Eostsido. The compary is considering using a two-stage cost allocation system and wants to assess the effects on reported product profits: More detalod financial informabion for HRs follows. The company plans to use Clients to alocate user-releted costs and Staff costs to alocate staff reloted costs. An occounting student from the local college working on a related project at HRs es a part of a course sagnested a further revision aher on andysis of the general operating accounts Specificaly, the student suggested that the staff related costs should be seporated into two cost pools insteod of one. One pool would be allocated based on starf hours and the other pool allocated based on staff costs. Thic goneral operating costs could the summarued as follows Required: a. Compile the predetimunod owerheod rate used to apply the thee general operating cost pods to tho Iwo center (f.astude and Westside) assuming Hirs uses the the student's propored two-stege cost system to allocote general operating costs b. Pased on the tales computed in requirement (of, what is the surptis (rovenues mirtus costs) for enach service

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