Kramerica Industries has come up with an ingenious business plan. Kramerica has two divisions. The first division manufactures the most delicious ice cream in the world. One scoop of this ice cream contains 11,000 calories. It is so good, once someone tastes it, they can't stop eating it. The second division manufactures patented and totally safe diet pills that, not coincidentally, will block the body from absorbing up to 25,000 calories per day. In addition to the two production departments, several service departments serve both production departments. One such service department is the HR department, which incurs $500,000 of costs per year. HR handles payroll (all employees paid semi-monthly), employee benefits (health insurance, 401(k)), employee relations, labor relations (Ice Cream Division has union production workers). Ice Cream Division has 10,000 employees with a total payroll of $6 million and employee benefits of $1 million. Diet Pill Division has 4,000 employees with a total payroll of $6 million (many of the employees are highly trained and high compensation scientists and engineers) and benefits of 1.5 million. Each of you is responsible for two posts: Post #1 You are an accountant responsible for cost allocations and other management accounting duties. Offer your preliminary opinion on how the $500,000 HR costs should be allocated to each department? What questions do you have regarding any additional facts you would need to make this analysis? Explain the reasoning for your recommendation.