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M 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.
M 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 31,250 $450,000 Eastside 25,000 5 270,000 8,100 599,000 Westside 6,250 $180,000 Total 2,700 $81,000 10,800 General operating costs $ 180,000 $270,000 Required: Staff costs 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? Answer is not complete. 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. Predetained overhead rate 23.04 per client Required> 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 Eastside 25,000 $270,000 8,100 $ 99,000 General operating costs Required: Staff costs Westside 6,250 $ 180,000 2,700 $ 81,000 Total 31,250 $450,000 10,800 $ 180,000 $270,000 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? Answer is not complete. 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 expected surplus (revenues less costs) for each center? Center Surplus Westside Eastside S 45,000
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