The Personnel Department at Hernandez Bros. is centralized and provides services to the two operating units:...

Question

Question

The Personnel Department at Hernandez Bros. is centralized and provides services to the two operating units: Miami and New Yo

Orlando, the manager of the New York unit, is unhappy with the results the controllers study. He asks the controller to deve

Allocation based on Employees Transitions Variable Rate $ 55 per employee $2,010 per transition Fixed Rate $ 155 per employee

based on Variable Rate $ 55 per employee $2,010 per transition Fixed Rate $ 155 per employee $3,690 per transition Total Rate

Orlando argues that New York should only be allocated the variable sts from this system, because the company would have to pa

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

The total to be allocated is $510 per employee and total employees combined is =1210+310=1520 and cost is

=1520*510=$775,200. Next we find the variable cost allocated to Newyork and the remaining of 775200 and variable allocated to NewYork goes to Miami

NewYork:

Employees=310

Cost=$55 per employee

Total=310*55=$17,050

Transition=21+29=50

Transition per employee cost=2010

Total=50*2010=$100,500

Total allocated cost=17050+100500=$117,550

Amount allocated to Miami=775200-117550=$657,650

Miaimi=$657,650

New York=$117,550

Add a comment

Answer 2

Similar Homework Help Questions

The Personnel Department at Hernandez Bros. is centralized and provides services to the two operating units:...

The Personnel Department at Hernandez Bros. is centralized and provides services to the two operating units: Miami and New York. The Miami unit is the original unit of the company and is well established. The New York unit is new, much like a start-up company. The costs of the Personnel Department are allocated to each unit based on the number of employees in order to determine unit profitability. The current rate is $630 per employee. Data for the fiscal year...
The Personnel Department at Hernandez Bros. is centralized and provides services to the two operating units:...

The Personnel Department at Hernandez Bros. is centralized and provides services to the two operating units: Miami and New York. The Miami unit is the original unit of the company and is well established. The New York unit is new, much like a start- up company. The costs of the Personnel Department are allocated to each unit based on the number of employees in order to determine unit profitability. The current rate is $510 per employee. Data for the fiscal...
The Personnel Department at Hernandez Bros. is centralized and provides services to the two operating units: Miami and New York. The Miami unit is the original unit of the company and is well establ...

The Personnel Department at Hernandez Bros. is centralized and provides services to the two operating units: Miami and New York. The Miami unit is the original unit of the company and is well established. The New York unit is new, much like a start-up company. The costs of the Personnel Department are allocated to each unit based on the number of employees in order to determine unit profitability. The current rate is $560 per employee. Data for the fiscal year...

The Personnel Department at Hernandez Bros. is centralized and provides services to the two operating units:...

The Personnel Department at Hernandez Bros. is centralized and provides services to the two operating units: Miami and New York. The Miami unit is the original unit of the company and is well established. The New York unit is new, much like a start-up company. The costs of the Personnel Department are allocated to each unit based on the number of employees in order to determine unit profitability. The current rate is $300 per employee. Data for the fiscal year...
The Personnel Department at Hernandez Bros. is centralized and provides services to the two operating units:...

The Personnel Department at Hernandez Bros. is centralized and provides services to the two operating units: Miami and New York. The Miami unit is the original unit of the company and is well established. The New York unit is new, much like a start-up company. The costs of the Personnel Department are allocated to each unit based on the number of employees in order to determine unit profitability. The current rate is $300 per employee. Data for the fiscal year...
Required information The Personnel Department at Hernandez Bros. is centralized and provides services to the two...

Required information The Personnel Department at Hernandez Bros. is centralized and provides services to the two operating units: Miami and New York. The Miami unit is the original unit of the company and is well established. The New York unit is new, much like a start-up company. The costs of the Personnel Department are allocated to each unit based on the number of employees in order to determine unit profitability. The current rate is $700 per employee. Data for the...

The Personnel Department at LastCall Enterprises handles many administrative tasks for the two divisions that make...

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 company’s traditional business line. This business, although lucrative, is currently not growing. StressedOut, on the other hand, is the company’s new business, which has experienced double-digit growth for each of the last three years. The cost allocation system at LastCall allocates all corporate costs to the divisions based on a variety of cost allocation bases....
The Personnel Department at LastCall Enterprises handles many administrative tasks for the two divisions that make...

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 company's traditional business line. This business, although lucrative, is currently not growing. Stressed Out, on the other hand, is the company's new business, which has experienced double-digit growth for each of the last three years. The cost allocation system at LastCall allocates all corporate costs to the divisions based on a variety of cost allocation...
The Personnel Department at LastCall Enterprises handles many administrative tasks for the two divisions that make...

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 company’s traditional business line. This business, although lucrative, is currently not growing. StressedOut, on the other hand, is the company’s new business, which has experienced double-digit growth for each of the last three years. The cost allocation system at LastCall allocates all corporate costs to the divisions based on a variety of cost allocation bases....

The Personnel Department at Lastal Enterprises handies many administrative basis for the two sons that make...

The Personnel Department at Lastal Enterprises handies many administrative basis for the two sons that make uplasia LadBack and stressedut Laack vion manages the company's t onal business e This business, although lucrative is currently not growing Stressedout on the other hand is the company's new business which has experienced coedigt growth for each of the last three years The cost allocation system at Las call alocales al corporate costs to the divisions based on a variety of cost a...

The Personnel Department at Hernandez Bros. is centralized and provides services to the two operating units:...

Homework Answers

Add Answer to:
The Personnel Department at Hernandez Bros. is centralized and provides services to the two operating units:...

Post as a guest

Earn Coins