EFG Bank has two support departments: Human Resources Department and

Computing Department. Two other departments in the bank service customers

directly: Deposits Department and Loans Department. The past year usage report of

services provided by the two support departments is presented below.

EFG Bank has two support departments: Human Resources Department and

Computing Department. Two other departments in the bank service customers

directly: Deposits Department and Loans Department. The past year usage report of

services provided by the two support departments is presented below.

	Support Departments
	Human Resources	Computing
Human Resources	-	20%
Computing	20%	-
Deposits	50%	60%
Loans	30%	20%

The costs incurred in the past year by Human Resources and Computing are $720,000

and $1,200,000 respectively.

Using the step-down method, compute the support department cost

allocated to Deposits and Loans Departments. EFG Bank allocates the costs

of Human Resources Department first.