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 User of Service HR Computing HR Computing Deposit Loan 0 25% 25% 0 60% 65% 15% 10% The budgeted costs in the two service departments for the year are as follows: HR Computing $519,000 748,500 Required: Use the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments. (Do not round your intermediate calculations and round final answers to the nearest dollar amount.)
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 User of Service HR Computing HR Computing Deposit Loan 0 25% 25% 0 60% 65% 15% 10% The budgeted costs in the two service departments for the year are as follows: HR Computing $519,000 748,500 Required: Use the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments. (Do not round your intermediate calculations and round final answers to the nearest dollar amount.)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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![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
HR
Computing
0
25%
25%
0
60%
65%
15%
10%
The budgeted costs in the two service departments for the year are as follows:
HR
Computing
$519,000
748,500
Required:
Use the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan
departments. (Do not round your intermediate calculations and round final answers to the nearest dollar amount.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe15069a3-d28b-4981-a0f9-3c67039861f9%2F605d684e-6740-44ff-b0f3-16edd56ea93a%2Fu1glird_processed.png&w=3840&q=75)
Transcribed Image Text: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
HR
Computing
0
25%
25%
0
60%
65%
15%
10%
The budgeted costs in the two service departments for the year are as follows:
HR
Computing
$519,000
748,500
Required:
Use the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan
departments. (Do not round your intermediate calculations and round final answers to the nearest dollar amount.)
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