Human Resources Accounting Checking Savings Loans Administration $540,000   10 10 30 40 10 Human resources 360,000 10

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Prosperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans). Monthly direct costs and the interdepartmental support structure are shown in the following benefits-provided ranking:

Percentage of Service Used by
Department Direct Costs Admin. Human Resources Accounting Checking Savings Loans
Administration $540,000   10 10 30 40 10
Human resources 360,000 10   10 30 20 30
Accounting 300,000 10 10   40 20 20
Checking 630,000            
Savings 337,500            
Loans 675,000            

Compute the total cost for each revenue-generating area of the bank using the step-method of cost allocation.

Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar.

Checking Answer
 
Savings Answer
 
Loans Answer
 
Total Answer
 

Please show all work step by step calculations! Thank you!

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Please Show all work step by step calculations! thank you! I know where answers for first and second row coming from. However, numbers for third and fourth row don't make any sence to me. Please explain detail by detail!

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