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6 State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departments (Deposits and Loans). A summary of costs and other

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6 State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departments (Deposits and Loans). A summary of costs and other data for each department prior to allocation of service department costs for the year ended December 31 follows: $160,000 21 500 252,000 $8,020,000 4,900,000 Employee hours 31,000 Square footage occupied 5.100 5.300 46.300 201,600 The costs of the service departments are allocated on the following bases Facilities, square footage occupied. (Do not round intermediate calculations.) Required a. Assume that the bank elects to distribute service department costs to production departments using the direct method. What amount of costs is allocated to the Deposits Department? b. Assume the same method of allocation as in requirement (a). What amount of Administration Department costs is allocated to the Loans Department? c. Assuming that the bank elects to distribute service department costs to other departments using the step method (starting with Facilities and then Communications), what amount of Facilities Department costs is allocated to the d. Assume the same method of allocation as in requirement (c). What amount of Communication t costs is allocated to Facilities

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