Required information 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 Provider of Service HR HR Computing Deposit Loan Computing 0 20% 10% 0 70% 20% 40% 40% The budgeted costs in the two service departments for the year are as follows: HR Computing $ 162,000 238,500 Required: Use the step-down method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments. Tuscaloosa National Bank allocates the costs of the HR Department first. Note: Do not round intermediate calculations.
Required information 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 Provider of Service HR HR Computing Deposit Loan Computing 0 20% 10% 0 70% 20% 40% 40% The budgeted costs in the two service departments for the year are as follows: HR Computing $ 162,000 238,500 Required: Use the step-down method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments. Tuscaloosa National Bank allocates the costs of the HR Department first. Note: Do not round intermediate calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Required information
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
Provider of Service
HR
HR
Computing
Deposit
Loan
Computing
0
20%
10%
0
70%
20%
40%
40%
The budgeted costs in the two service departments for the year are as follows:
HR
Computing
$ 162,000
238,500
Required:
Use the step-down method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan
departments. Tuscaloosa National Bank allocates the costs of the HR Department first.
Note: Do not round intermediate calculations.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education