Question
Algebraic method Prosperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans). Monthly direct
Algebraic method 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 below:
Percentage of Service Used by | |||||||
---|---|---|---|---|---|---|---|
Department | Direct Costs | Admin. | Human Resources | Accounting | Checking | Savings | Loans |
Administration | $972,000 | 10 | 10 | 30 | 40 | 10 | |
Human resources | 648,000 | 10 | 10 | 30 | 20 | 30 | |
Accounting | 540,000 | 10 | 10 | 40 | 20 | 20 | |
Checking | 1,134,000 | ||||||
Savings | 607,500 | ||||||
Loans | 1,215,000 |
Compute the total cost for each revenue-generating area of the bank using the algbraic method. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. Note: Round your final answers below to the nearest 100; for example, round 8,668 to 8,700.
Checking | Answer |
Savings | Answer |
Loans | Answer |
Total | Answer |
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