Problem

Tuscaloosa National Bank has two service departments the Human Resources (HR) Department a...

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

15%

Computing

10%

Deposit

60%

50%

Loan

30%

35%

The budgeted costs in the two service departments for the year are as follows:

HR

$153.000

Computing

229.500

Required: Use the direct method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments.

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