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 HR Computing Deposit Loan HR Computing The budgeted costs in the two service departments for the year are as follows: Provider of Service Provider of Service HR HR Computing Total 0 10% 70% 20% Deposit Required: Use the direct method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments. Note: Do not round intermediate calculations. $ 171,000 232,900 Computing 15% 0 50% 35% Loan

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
HR
Computing
Deposit
Loan
Provider of Service
Provider of Service
HR
HR
Computing
Total
0
10%
70%
20%
The budgeted costs in the two service departments for the year are as follows:
HR
Computing
Deposit
$ 171,000
232,900
Required:
Use the direct method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan
departments.
Note: Do not round intermediate calculations.
Computing
15%
0
50%
35%
Loan
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 HR Computing Deposit Loan Provider of Service Provider of Service HR HR Computing Total 0 10% 70% 20% The budgeted costs in the two service departments for the year are as follows: HR Computing Deposit $ 171,000 232,900 Required: Use the direct method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments. Note: Do not round intermediate calculations. Computing 15% 0 50% 35% Loan
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