Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside The...
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Accounting
Harmon Recycling Services HRS a notforprofit organization, has two dropoff centers, Westside and Eastside The company is considering using a twostage cost allocation system and wants to assess the effects on reported product profits. More detailed financial information for HRS follows The company plans to use Clients to allocate userrelated costs and Staff Costs to allocate staffrelated costs. An accounting student from the local college working on a related project at HRS as a part of a course, suggested a further revision after an analysis of the general operating accounts. Specifically the student suggested that the staffrelated costs should be separated into two cost pools instead of one. One pool puould be allocated based on staff hours and the other pool allocated based on staff costs. The general operating costs could be summarized as follows: Userrelated operating costs Staff hourrelated operating costs Staff costrelated operating cost Total general operating cost
Harmon Recycling Services HRS a notforprofit organization, has two dropoff centers, Westside and Eastside The company is
considering using a twostage cost allocation system and wants to assess the effects on reported product profits.
More detailed financial information for HRS follows
The company plans to use Clients to allocate userrelated costs and Staff Costs to allocate staffrelated costs.
An accounting student from the local college working on a related project at HRS as a part of a course, suggested a further revision
after an analysis of the general operating accounts. Specifically the student suggested that the staffrelated costs should be separated
into two cost pools instead of one. One pool puould be allocated based on staff hours and the other pool allocated based on staff costs.
The general operating costs could be summarized as follows:
Userrelated operating costs
Staff hourrelated operating costs
Staff costrelated operating cost
Total general operating cost
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