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Problem 6-9 Choice of Allocation Based, Problems with Cost Allocation Tilden Financial Services has two divisions, Financial Planning and Business Consulting. The firm's accountants are in the process of selecting an allocation base to allocate centrally provided personnel costs to the divisions. Two allocation bases have been proposed salary and headcount (number of employees). Expected costs and data relating to the allocation follow: Financial Planning Business Consulting Total $ 1,500,000 Expected personnel costs Salaries Headcount $ 15,000,000 $5,000,000 200 50 Required a. Prepare a schedule showing the allocations to the two divisions using each allocation base. Amount To Be Allocated Financial Planning Proportion Financial Planning Allocation Business Consulting Proportion Business Consulting Allocation Allocation Base Salaries Headcount b. Referring to your answer to a, explain why allocations are sometimes considered arbitrary