3.) Tusca National Bank has two service departments, the Human Resources Department and the ComputingDepartment. The Bank has two other departments that directly service customers, the Deposit department and the LoanDepartment. The usage of the two service departments' output for the year is as follows:www.mwUser of ServiceHRComputingDepositLoanProvider of ServiceHR30%40%30%Computing10%50%40%The budgeted costs in the two service departments for the year as follows:HR: $ 300,000Computing: $ 160,Use a.) direct method, b.) step-down method and c.) reciprocal services method to allocate the budgeted costs of HRand Computing departments.

According to the question given, we need to prepare the overhead distribution summary.Overhead…

3.) 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.

3.) 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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