Secure Bank has two support departments: the Human Resources Department and the Computing Department. The bank also has two departments that service customers directly: the Deposits Department and the Loans Department. The usage of the two support departments' output in the year just ended was as follows:

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 direct method to allocate the budgeted costs of the Human Resources and Computing Departments to the Deposits and Loans Departments.

Transcribed Image Text:

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