(Direct method) Imbornone Bank has three service areas (administration, personnel, and accounting) and three revenue-generating areas (checking ac¬ counts, savings accounts, and loans). Monthly direct costs and the interde¬ partmental service structure are shown in the following benefits-provided ranking.

Compute the total cost for each revenue-generating area using the direct method. LO.1

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PERCENTAGE OF SERVICE USED BY 10% Department Direct Costs Admin. Personnel Accounting Checking Savings Loans Administration $180,000 10% 30% 40% 10% Personnel 120,000 10% 10 30 20 Accounting 180,000 10 10 40 20 22 30 20 Checking 280,000 Savings 150,000 Loans 300,000