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 Provider of Service HR $599,000 828,500 25% 65% 10% The budgeted costs in the two service departments for the year are as follows: Computing 25% 65% 10% Provider of Service Allocation of HR Department costs Allocation of Computing Department costs Total costs allocated to each department 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.) Deposit Loan
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 Provider of Service HR $599,000 828,500 25% 65% 10% The budgeted costs in the two service departments for the year are as follows: Computing 25% 65% 10% Provider of Service Allocation of HR Department costs Allocation of Computing Department costs Total costs allocated to each department 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.) Deposit Loan
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject: acounting
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
HR
Computing
Provider of Service
HR
$599,000
828,500
25%
65%
10%
The budgeted costs in the two service departments for the year are as follows:
Computing
25%
65%
10%
Provider of Service
Allocation of HR Department costs
Allocation of Computing Department costs
Total costs allocated to each department
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.)
Deposit
Loan
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.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