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Home Q & A Board Other Fields Homework Help Business Economics
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dxpayne dxpayne
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6 years ago
The cost of the personnel department at the Miller Company has always been charged to the production departments based upon number of employees. Recently, opinions gathered from the department managers indicated that the number of new hires might also be a predictor of personnel costs to be assigned. Total personnel department costs are $120,000.

      Department   Department   Department
   Cost Driver   A   B   C
Number of employees   300   250   50
The number of new hires   15   25   10

Required:
Using the above data, prepare a report that contrasts the different amounts of personnel department cost that would be allocated to each of the production departments if the cost driver used is:
a.   number of employees.
b.   the number of new hires.
c.   Which cost estimation method is being used by Miller Company?
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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btpsandbtpsand
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6 years ago
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dxpayne Author
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#2
5 years ago
Shared this answer this my study group, thank you for helping us out
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