Question Step method 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 Direct Cotts Admin, Human Resources Accounting Checking Savings Loans $1,080,000 10 40 720,000 20 600,000 20 1,260,000 675,000 1,350,000 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 s Savings Loans Total Administration Human resources Accounting Checking Savings Loans S 10 10 10 10 10 30 30 40 288 10 30 20
Question Step method 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 Direct Cotts Admin, Human Resources Accounting Checking Savings Loans $1,080,000 10 40 720,000 20 600,000 20 1,260,000 675,000 1,350,000 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 s Savings Loans Total Administration Human resources Accounting Checking Savings Loans S 10 10 10 10 10 30 30 40 288 10 30 20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Question 8
Step method
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
10
10
$1,080,000
720,000
600,000
1,260,000
675,000
1,350,000
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 s
Savings
Loans
Total S
Human resources
Accounting
Checking
Savings
Loans
10
10
10
10
10
30
30
40
40
20
20
288
30
20](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe7483fcd-73aa-4795-a0a0-93d149b7c6db%2F70aff3bc-def6-47c8-8f53-b625ea2894fd%2Frluis7o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 8
Step method
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
10
10
$1,080,000
720,000
600,000
1,260,000
675,000
1,350,000
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 s
Savings
Loans
Total S
Human resources
Accounting
Checking
Savings
Loans
10
10
10
10
10
30
30
40
40
20
20
288
30
20
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