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Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow.
Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. clients Revenues Staff hours Staff costs General operating costs Eastside 25,000 $ 720,000 8,100 $ 99,000 Westside 6,250 $480,000 2,700 $ 216,000 Total 31,250 $ 1,200,000 10,800 $ 315,000 $720,000 Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. Note: Round your answer to 2 decimal places. Predetermined overhead rate per client Required A Required B >
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