Aurora 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:

Provider of Service

User of Service Human Resources Computing

Human Resources (HR) 15 %

Computing 10 %

Deposit 60 % 50 %

Loan 30 % 35 %

The budgeted costs in the two service departments for the year are as follows: Human Resources $ 459,000 Computing 688,500

Required: Use the step-down method to allocate the budgeted costs of the Human Resources and Computing departments to the Deposit and Loan departments. Aurora National Bank allocates the costs of the Human Resources Department first. (Do not round intermediate calculations.)

Deposit Loan

Allocation of HR Dept. Costs

Allocation of Computing Dept. Costs

Total Cost Allocated to Each Dept.