Dunedin Bank has two operating departments (Retail and Commercial) and three service departments: Operations, Information Technology (IT), and Transactions. For the last period, the following costs and service department usage ratios were recorded:

Supplying Department	Using Department
	Transactions	IT	Operations	Retail	Commercial
Transactions	0	0	0	70%	30%
IT	10%	0	30%	30%	30%
Operations	70%	0	0	10%	20%
Direct cost	$ 430,000	$ 850,000	$ 1,690,000	$ 3,890,000	$ 2,440,000

Required:

a. Allocate the service department costs to the two operating departments using the reciprocal method.

PLEASE COMPLETE ALL OF THE BLANKS NOT FILLED IN WITH THE CORRECT NUMBERS FOR EACH.

PLEASE COMPLETE ASAP BY 7:00 TONIGHT

Required: a. Allocate the service department costs to the two operating departments using the reciprocal method