FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Tuscaloosa National Bank has two service departments, the Human Resources (HR) 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
Computing
15%
20%
50%
50%
30%
35%
The budgeted costs in the two service departments for the year are as follows:
HR
Computing
$158,000
238,000
Required:
Use the direct method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments.
(Do not round intermediate calculations.)
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Transcribed Image Text:Tuscaloosa National Bank has two service departments, the Human Resources (HR) 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 Computing 15% 20% 50% 50% 30% 35% The budgeted costs in the two service departments for the year are as follows: HR Computing $158,000 238,000 Required: Use the direct method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments. (Do not round intermediate calculations.)
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