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:

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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User of Service HR Computing Deposit Loan Provider of Service HR - Computing 15% 10% - 60% 50% 30% 35%