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E129 Step-down method of support department cost allocation: bank L0 110 Secure Bank has two support departments: the human resources department and the computing department.
E129 Step-down method of support department cost allocation: bank L0 110 Secure Bank has two support departments: the human resources department and the computing department. The bank also has two departments that service customers directly: the deposits depar and the loans department. Usage of the two support departments' output in the vear just ended wa follows: Provider of service User of Human Com utin service resources p g Human resources _ 20% Computing 2% Deposits 53% 60% Loans 3l}% 2% The budgeted costs in the two support departments for the vear just ended were: Human resources Computing $ 1,20, 31; ?20,000 Required: Use the stepdown method to allocate the budgeted costs of the human resources and computing departments to the deposits and loans departments. Secure Bank allocates the costs of the human r department rst
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