Question: only corrrect answers and show the work please PROBLEM 6-9. Choice of Allocation Base, Problems with Cost Allocation [LO 1] Tilden Financial Services has two

only corrrect answers and show the work please

PROBLEM 6-9. Choice of Allocation Base, Problems with Cost Allocation [LO 1] Tilden Financial Services has two divisions, Financial Planning and Business Consulting. The firms 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). Personnel costs are expected to be $1,500,000.

The following data relate to the allocation: Financial Planning Business Consulting Salaries $15,000,000 $5,000,000 Headcount 200 50 Required

a. Prepare a schedule showing the allocations to the two divisions using each allocation base.

b. Referring to your answer to part a, explain why allocations are sometimes considered arbitrary

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