Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. The company is 1 2 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: Eastside Westside Total Clients 25,000 6,250 31,250 Revenues $ 1,260,000 $ 840,000 % 2,100,000 Staff hours 8,100 2,700 10,800 Staff costs $ 462,000 $ 378,000 $ 840,000 General operating costs: !] User-related $ 630,000 eBook Staff-related 630,000 Total general operating costs $ 1,260,000 The company plans to use Clients to allocate user-related costs and Staff Costs to allocate staff-related costs. Required: a. Compute the predetermined overhead rate used to apply the two general operating costs pools to the two centers (Eastside and Westside) assuming HRS uses the proposed two-stage cost system to allocate general operating costs. b. Based on the rates computed in requirement (&), what is the surplus (revenues minus costs) for each service? Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rate used to apply the two general operating costs pools to the two centers (Eastside and Westside) assuming HRS uses the proposed two-stage cost system to allocate general operating costs. Note: Round your "User-related costs" answer to 2 decimal places. Userroltedoosts [ [paruser | Staff-related costs Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. The company is 1 2 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: Eastside Westside Total Clients 25,000 6,250 31,250 Revenues $ 1,260,000 $ B40,000 $ 2,100,000 Staff hours 8,100 2,700 10,800 Staff costs $ 462,000 $ 378,000 $ 840,000 General operating costs: Q User-related $ 630,000 eBook Staff-related 630,000 Total general operating costs $ 1,260,000 The company plans to use Clients to allocate user-related costs and Staff Costs to allocate staff-related costs. Required: a. Compute the predetermined overhead rate used to apply the two general operating costs pools to the two centers (Eastside and Westside) assuming HRS uses the proposed two-stage cost system to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the surplus (revenues minus costs) for each service? Complete this question by entering your answers in the tabs below. Required A Required B Based on the rates computed in requirement (a), what is the surplus (revenues minus costs) for each service? Note: Negative amounts should be indicated by a minus sign. Casioo [ |