Refer to the data given in Exercise 7.27.

The budgeted costs in the two support departments for the year just ended were:
Human Resources......................................$720,000
Computing.............................................1,200,000
Required:
Use the step-down method to allocate the budgeted costs of the Human Resources and Computing departments to the Deposits and Loans Departments. Secure Bank allocates the costs of the Human Resources Department first.

Transcribed Image Text:

Provider of service Computing 20% Human Resources User of service Human Resources Computing Deposits 20% 50% 60% 20% 30% Loans