The Personnel Department at Hemandez Bros. is centralized and provides services to the two operating units: Miami and New York. The Miami unit is the original unit of the company and is well established. The New York unit is new much like a start-up company. The costs of the Personnel Department are allocated to each unit based on the number of employees in order to determine unit profitability. The current rate is S300 per employee. Data for the fiscal year just ended show the following Miami New York Number of employees Number of new hires 1,900 35 15 600 100 Number of employees departing Orlando, the manager or the New York unit, is unhappy with the resuits or the controller's study. He asks the controlier to develop separate rates for fixed and vanable costs in the Personnel Department. The controer reports back to Orlando that the rates would be as tollows: Variable Rate Fixed Rate 3 60 per employee $2,000 per transition Alocation based on Total Rate Employees Transitions 20 peremployee $750 per transition $ 80 per employee 2,750 per transition Required a. Orlando argues that New York should only be allocated the varlable costs from this system, because the company would have to pay the flxed costs even if New York did not exist. Compute the cost allocated to each unit using the approach Orlando preters. Miami New York