x ces There are two basic activities in the HR Department. The first is employee maintenance...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 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
Expert Answer:
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
Students also viewed these accounting questions
-
The personnel department at LastCall Enterprises handles many administrative tasks for the two divisions that make up LastCall: LaidBack and StressedOut. LaidBack division manages the companys...
-
Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Budgeted Activity Usage 7,600 Activity Machining...
-
Consider the linear system Au = e1 in which A is the 8 8 tridiagonal matrix with all 2's on the main diagonal and all - l's on the sub- and superdiagonal. (a) Use Exercise 8.2.47 to find the...
-
In Exercises solve the Bernoulli differential equation. The Bernoulli equation is a well-known nonlinear equation of the form that can be reduced to a linear form by a substitution. The general...
-
Shiloh supplies equipment to the automotive and commercial vehicle markets and other industrial customers. It specializes in materials and designs that reduce vehicle weight and increase fuel...
-
Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at...
-
Identify and analyze at least two considerations to ensure effective transaction transparency of Centralized database management systems and Distributed Database management systems. Identify...
-
Chilliwack Manufacturing Inc. has $240,000 of 13% debenture bonds outstanding. The bonds were issued at 106 in 2020 and mature in 2040. Requirements 1. How much cash did Chilliwack receive when it...
-
John is setting up his timetable for second semester. There are 7 courses that John is interested in taking, but there is room for only 4 courses in his timetable. How many different groups of 4...
-
Gamma Ltd has a reconciliation problem. The bank reconciliation officer is unable to reconcile the cash at bank value recorded in the general ledger account with the cash at bank balance disclosed on...
-
contract proposal for a newly drafted first-round draft pick The agent will seek to construct a contract that will benefit his or her client the best. This contract proposal that will meet the needs...
-
Send an email to "All Staff" outlining the details of the upcoming Staff Appreciation Night. Here are a few details to consider..... - Message will be sent the middle of next month. - Acknowledge...
-
Can proprietary companies engage in crowd-sourced funding? If so, what compliance obligations are imposed by the Corporations Act?
-
A trainer collected the data in the following table for a random sample of 30 contestants in the Hilly Hundred (mile) bike race in Bloomington Indiana. He wants to use this information to predict...
-
An access route is being constructed across a field (Figure Q8). Apart from a relatively firm strip of ground alongside the field's longer side AB, the ground is generally marshy. The route can...
-
Some stream data have been collected from a process plant, and these are listed in Table P19.2. Assuming the minimum temperature difference between streams, \(\Delta T_{\min }=10^{\circ} \mathrm{C}\)...
-
Figure P19.3 shows a network design using steam, cooling water and some heat recovery. (a) Does this design achieve the minimum energy target for \(\Delta T_{\min }=20^{\circ} \mathrm{C}\) ? (b) If...
-
Figure P19.4 shows two hot streams and two cold streams for heat integration (subject to \(\Delta T_{\min }=20^{\circ} \mathrm{C}\) ). (i) What are the energy targets? (ii) Show a network design...
Study smarter with the SolutionInn App