The cost allocation system at Exeter allocates all corporate costs to the divisions based on a variety of cost allocation bases. HR costs

are allocated based on the average number of employees in the two divisions.

There are two basic activities in the HR Department. The first is employee maintenance $($payroll administration, benefits, and so on$),$

which is an ongoing activity and requires the same amount of work for each employee regardless of the employee's salary. The

second, called turnover, handles new and departing employees, including all records and orientations $($for new employees$)$ and

assurance of procedural integrity $($for all departures$).$ Virtually all of this activity occurs when employees are hired or leave the

company.

Assorted data for Exeter for the most recent year follow:

The HR Department incurred the following costs during the same year.

Required:

a$.$ Under the current allocation system, what are the costs that will be allocated from HR to Retail Division? To Online Division?

b$.$ Suppose the company implements an activity$-$based cost system for HR with the two activities, employee maintenance and

turnover. Use the average number of employees as the cost driver for employee maintenance costs and the average number of

employees hired or leaving for turnover costs. What are the costs that will be allocated from HR to Retail? To Online?

Complete this question by entering your answers in the tabs below.

Under the current allocation system, what are the costs that will be allocated from HR to Retail Division? To Online Division?

Note: Do not round intermediate calculations and round your answers to the nearest whole dollar.