Question

E F G H Use the following information to allocate costs using the direct, step, and reciprocal methods: Not-A-Mega Bank has t
The costs of the service departments are allocated on the following bases: Administration, employee hours: Communications, nu
DIRECT METHOD Service Departments Administration Communications Facilities Production Departments Deposits Loans Total Admini
H STEP METHOD (Facilities, Communications, and then Administration) Service Departments Production Departments Administration
in RECIPROCAL METHOD Service Departments Administration Communications Facilities 00 Production Departments Deposits Loans To
0 0
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Answer #1

GIVEN Total Service Departments Administration Communications 160.000 240.000 15.500 15.500 Facilities 203 200 15.500 Direct

Service Departments Production Departments Deposits Adminstration 6,730,000 4.850.00 Allocation Percentage Number of Employee

Service Departments Communications Production Departments Deponite Loans Administration Facilities Total facilities Square Fo

RECIPROCAL METHOD Service Departments Communication Production Departments Deposit na tration Square Footage 176,000 144,000

Working Note: Let, Total Adminstration Costs bex Total Communication Costs bey Total Facilities Costs bez Hence, equations ar

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