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Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of...

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Accounting

Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company's human
resources (HR) department. The annual costs of the HR department total $20,000,000 a year. You have the following selected
information about the two divisions:
Required:
Determine the cost allocation if $12.5 million of the HR costs are fixed and allocated on the basis of employees, and the reming
costs, which are variable, are allocated on the basis of the wage and salary expense total.
Note: Do not round intermediate calculations. Enter your answers in dollars, not in millions or thousands.
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