What is the residual income for this division

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Q1. Hardy, Inc has a centralized HR department with $280,000 in expenses this year. HR has provided a total of 4,000 hours of service for the period. The Retail division used 2,750 hours of HR time while the Commercial division used 1,250 hours of HR time during the period. There are no other divisions. How much should the Commercial division be allocated for HR services?

Q2. The Wholesale Division of Romo Electronics has Operating Income of $12,860,000 and Assets of $74,500,000. The company's minimum acceptable return on assets is 11%. What is the residual income for this division?

Reference no: EM133171770

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