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Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company s human resources ( HR ) department. The

Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the companys human resources (HR) department. The annual costs of the HR department total $31,000,000 a year. You have the following selected information about the two divisions:
Number of Employees Wage and Salary Expense ($000)
Northern 3,245 $ 279,000
Southern 2,655171,000
Required:
What is the HR cost that is charged to each division if the number of employees is used as the allocation basis?
What is the HR cost that is charged to each division if the wage and salary expense total is used as the allocation basis?

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