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 wo service departments' output for the year is as follows: User of Service HR Computing Deposit Loan HR Computing $599,000 828,500 Provider of Service HR The budgeted costs in the two service departments for the year are as follows: 25% 65% 10% Computing 25% Provider of Service 65% 10% Required: Jse the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments. (Do not round your intermediate calculations and round final answers to the nearest dollar amount.) Answer is complete but not entirely correct. Deposit 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 wo service departments' output for the year is as follows: User of Service HR Computing Deposit Loan HR Computing $599,000 828,500 Provider of Service HR The budgeted costs in the two service departments for the year are as follows: 25% 65% 10% Computing 25% Provider of Service 65% 10% Required: Jse the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments. (Do not round your intermediate calculations and round final answers to the nearest dollar amount.) Answer is complete but not entirely correct. Deposit Loan
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Subject: acounting
![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
HR
Computing
Provider of Service
HR
$599,000
828,500
-
25%
65%
10%
The budgeted costs in the two service departments for the year are as follows:
Provider of Service
Allocation of HR Department costs
Allocation of Computing Department costs
Total costs allocated to each department
Computing
25%
Required:
Use the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan
departments. (Do not round your intermediate calculations and round final answers to the nearest dollar amount.)
65%
10%
Answer is complete but not entirely correct.
Deposit
Loan
$
$
558,913 $
678,253✔
1,237,166 $
85,987
104,347✔
190,334](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F472621be-5969-4a54-b52e-f83201e6e65c%2Fa5bcf8d2-e78f-4bb5-bbf0-2a4b83b24407%2F6ud8upd_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
HR
Computing
Provider of Service
HR
$599,000
828,500
-
25%
65%
10%
The budgeted costs in the two service departments for the year are as follows:
Provider of Service
Allocation of HR Department costs
Allocation of Computing Department costs
Total costs allocated to each department
Computing
25%
Required:
Use the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan
departments. (Do not round your intermediate calculations and round final answers to the nearest dollar amount.)
65%
10%
Answer is complete but not entirely correct.
Deposit
Loan
$
$
558,913 $
678,253✔
1,237,166 $
85,987
104,347✔
190,334
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