Burchill Consultants is a global consulting firm. The firm has a travel policy that reimburses employees...

  

 

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Burchill Consultants is a global consulting firm. The firm has a travel policy that reimburses employees for the "ordinary and necessary" costs of business travel and reimburses business-class airfare for international and "long" domestic flights. Associates at the firm often mix a business trip with pleasure by either extending the time at the destination or traveling from the business destination to a nearby resort or other personal destination. When this happens, an allocation must be made between the business and personal portions of the trip, so that only the business portion is reimbursed. However, the travel policy is unclear on the allocation method to follow. Consider this example. An employee obtained a business-class ticket for $8,727 and traveled the following itinerary. From Los Angeles Singapore Sydney To Singapore Sydney Los Angeles Miles 8,940 4,978 7,658 One-Way Regular Fare $ 3,566 2,328 3,788 Purpose Business Personal Return On the date of the flights between Los Angeles and Singapore (and return), a restricted round-trip business-class fare of $4,208 was available. Required: a. Compute the business portion of the airfare according to each of the following independent scenarios: 1. Based on the maximum reimbursement for the employee. 2. Based on the minimum cost to the company. Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company's human resources (HR) department. The annual costs of the HR department total $26,000,000 a year. You have the following selected information about the two divisions: Northern Southern Number of Employees 2,970 2,430 Wage and Salary Expense ($008) $ 248,000 152,000 Required: a. What is the HR cost that is charged to each division if the number of employees is used as the allocation basis? b. What is the HR cost that is charged to each division if the wage and salary expense total is used as the allocation basis? Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company's 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: Northern Southern Required: Number of Wage and Salary Employees Expense ($800) 3,135 2,565 $ 266,600 163,400 Determine the cost allocation if $17.0 million of the HR costs are fixed and allocated on the basis of employees, and the remaining costs, which are variable, are allocated on the basis of the wage and salary expense total. Note: Do not round Intermediate calculations. Enter your answers In dollars, not in millions or thousands. Fixed Variable Total Northern Southern Burchill Consultants is a global consulting firm. The firm has a travel policy that reimburses employees for the "ordinary and necessary" costs of business travel and reimburses business-class airfare for international and "long" domestic flights. Associates at the firm often mix a business trip with pleasure by either extending the time at the destination or traveling from the business destination to a nearby resort or other personal destination. When this happens, an allocation must be made between the business and personal portions of the trip, so that only the business portion is reimbursed. However, the travel policy is unclear on the allocation method to follow. Consider this example. An employee obtained a business-class ticket for $8,727 and traveled the following itinerary. From Los Angeles Singapore Sydney To Singapore Sydney Los Angeles Miles 8,940 4,978 7,658 One-Way Regular Fare $ 3,566 2,328 3,788 Purpose Business Personal Return On the date of the flights between Los Angeles and Singapore (and return), a restricted round-trip business-class fare of $4,208 was available. Required: a. Compute the business portion of the airfare according to each of the following independent scenarios: 1. Based on the maximum reimbursement for the employee. 2. Based on the minimum cost to the company. Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company's human resources (HR) department. The annual costs of the HR department total $26,000,000 a year. You have the following selected information about the two divisions: Northern Southern Number of Employees 2,970 2,430 Wage and Salary Expense ($008) $ 248,000 152,000 Required: a. What is the HR cost that is charged to each division if the number of employees is used as the allocation basis? b. What is the HR cost that is charged to each division if the wage and salary expense total is used as the allocation basis? Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company's 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: Northern Southern Required: Number of Wage and Salary Employees Expense ($800) 3,135 2,565 $ 266,600 163,400 Determine the cost allocation if $17.0 million of the HR costs are fixed and allocated on the basis of employees, and the remaining costs, which are variable, are allocated on the basis of the wage and salary expense total. Note: Do not round Intermediate calculations. Enter your answers In dollars, not in millions or thousands. Fixed Variable Total Northern Southern