Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

 

x ces 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: Number of employees (average) Employees hired/leaving Retail 17,660 720 Online Total 2,340 20,000 1,640 2,360 The HR Department incurred the following costs during the same year. Employee maintenance Turnover Total $ 4,280,000 4,720,000 $ 9,000,000 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. Required A Required 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? Retail Online Employee maintenance Turnover Required

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

3rd Edition

9780078025525, 9780077517359, 77517350, 978-0077398194

More Books

Students also viewed these Accounting questions

Question

What did Tolman mean by intervening variable?

Answered: 1 week ago