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 $29,000,000 a year. You have the following selected information about the two divisions:

	Number of Employees	Wage and Salary Expense ($000)
Northern	3,135	$ 266,600
Southern	2,565	163,400

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?