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: Clients Revenues Staff hours Staff costs General operating costs: User-related Staff-related Eastside 25,000 Westside 6,250 $ 1,890,000 8,100 $ 693,000 $ 1,260,000 2,700 $ 567,000 Total general operating costs Total 31,250 $ 3,150,000 10,800 $ 1,260,000 $ 945,000 945,000 $ 1,890,000 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 would be allocated based on staff hours and the other pool allocated based on staff costs. The general operating costs could be summarized as follows: