Refer to the data given in the preceding exercise.

Required: 

Use the step-down method to allocate the budgeted costs of the Personnel and Computing departments to the Deposit and Loan departments. Aurora National Bank allocates the costs of the Personnel Department first.

Data From Preceding Exercise:-

Aurora National Bank has two service departments, the Personnel 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:

Transcribed Image Text:

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