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. (Do not round intermediate calculations.)

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Deposit
Loan
Allocation of HR Department costs
Allocation of Computing Department costs
Total costs allocated to each department
Transcribed Image Text:Deposit Loan Allocation of HR Department costs Allocation of Computing Department costs Total costs allocated to each department
Exercise 17-18 Step-Down Method of Service Department Cost Allocation; Bank (LO 17-1)
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:
Provider of Service
Computing
20%
User of Service
HR
HR
Computing
Deposit
10%
60%
50%
Loan
30%
30%
The budgeted costs in the two service departments for the year are as follows:
$474,000
711,000
HR
Computing
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. (Do not round intermediate calculations.)
Transcribed Image Text:Exercise 17-18 Step-Down Method of Service Department Cost Allocation; Bank (LO 17-1) 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: Provider of Service Computing 20% User of Service HR HR Computing Deposit 10% 60% 50% Loan 30% 30% The budgeted costs in the two service departments for the year are as follows: $474,000 711,000 HR Computing 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. (Do not round intermediate calculations.)
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