Harmon Recycling Services $($HRS$),$ a not$-$for$-$profit organization, has two drop$-$off centers, Westside and Eastside. Data for the expected operation in the next quarter follow.

Eastside Westside Total

Clients $25,0006,25031,250$

Revenues $ $270,000$ $ $180,000$ $ $450,000$

Staff hours $8,1002,70010,800$

Staff costs $ $99,000$ $ $81,000$ $ $180,000$

General operating costs $ $270,000$

Required:

Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the staff cost to allocate general operating costs.

Based on the rates computed in requirement $($a$),$ what is the expected surplus $($revenues less costs$)$ for each center? PLEASE ANSWER PARTS A AND B$.$ NOTE THAT A ASKS YOU TO USE STAFF COST!!

Answer rating: 100% (QA)

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