FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Tusca National Bank has two service departments, the Human Resources Department and the Computing Department.
The Bank has two other departments that directly service customers, the Deposit department and the Loan Department
The usage of the two service departments' output for the year is as follows:
User of Service
HR
Computing
Deposit
Loan
Provider of Service
HR
30%
40 %
30%
Computing
10%
50%
40%
The budgeted costs in the two service departments for the year as follows:
HR: $ 300,000
Computing: $ 160,000
Use a.) direct method, b.) step-down method and c.) reciprocal services method to allocate the budgeted costs of HR
and Computing departments.
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Transcribed Image Text:Tusca National Bank has two service departments, the Human Resources Department and the Computing Department. The Bank has two other departments that directly service customers, the Deposit department and the Loan Department The usage of the two service departments' output for the year is as follows: User of Service HR Computing Deposit Loan Provider of Service HR 30% 40 % 30% Computing 10% 50% 40% The budgeted costs in the two service departments for the year as follows: HR: $ 300,000 Computing: $ 160,000 Use a.) direct method, b.) step-down method and c.) reciprocal services method to allocate the budgeted costs of HR and Computing departments.
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