Exercise 17-23 Reciprocal-Services Method; Bank (Appendix) (LO 17-6) 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 HR 10% Gens 30% Computing 15% sexx 35% The budgeted costs in the two service departments for the year are as follows: $153,000 229,500 Required: Use the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan
Exercise 17-23 Reciprocal-Services Method; Bank (Appendix) (LO 17-6) 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 HR 10% Gens 30% Computing 15% sexx 35% The budgeted costs in the two service departments for the year are as follows: $153,000 229,500 Required: Use the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Exercise 17-23 Reciprocal-Services Method; Bank (Appendix) (LO 17-6)
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
HR
18%
68%
3806
Computing
15%
The budgeted costs in the two service departments for the year are as follows:
$153,000
229,500
5805
35%
Required:
Use the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan
departments. (Round intermediate calculations and final answers to the nearest dollar amount.)
Provider of Service
Allocation of HR Department costs
Allocation of Computing Department costs
Total costs allocated to each department
$
Deposit
OS
Loan](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0351e983-5f39-4b75-a040-a4dce12c0dc5%2F85f25c27-1ddf-49a0-8ad7-46e6d4f20124%2Fnef38ok_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 17-23 Reciprocal-Services Method; Bank (Appendix) (LO 17-6)
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
HR
18%
68%
3806
Computing
15%
The budgeted costs in the two service departments for the year are as follows:
$153,000
229,500
5805
35%
Required:
Use the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan
departments. (Round intermediate calculations and final answers to the nearest dollar amount.)
Provider of Service
Allocation of HR Department costs
Allocation of Computing Department costs
Total costs allocated to each department
$
Deposit
OS
Loan
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