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10 30 Prosperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans). Monthly direct
10 30 Prosperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans). Monthly direct costs and the interdepartmental support structure are shown in the following benefits-provided ranking: Percentage of Service Used by Department Direct Costs Admin. Human Resources Accounting Checking Savings Loans Administration $540,000 10 30 Human resources 360,000 10 10 30 Accounting 300,000 10 10 40 20 20 Checking 630,000 Savings 337,500 Loans 675,000 Compute the total cost for each revenue-generating area of the bank using the step-method of cost allocation. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. Checking 1,117,500 x Savings 1,390,500 x 121,500 x Total 2,842,500 Loans
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