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Exercise 17-23 Reciprocal-Services Method; Bank (Appendix) (LO 17-6) Tuscaloosa National Bank has two service departments, the Human Resources (HR) Department and the Computing Department. The
Exercise 17-23 Reciprocal-Services Method; Bank (Appendix) (LO 17-6) Tuscaloosa 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 HR Computing HR 25% Computing 25% Deposit 65% 652 Loan 10% The budgeted costs In the two service departments for the year are as follows: HR $639, 080 Computing 868, 500 Required: Use the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments. (Do not round your Intermediate calculations and round final answers to the nearest dollar amount.) Answer is complete and correct. Provider of Service Deposit Loan Allocation of HR Department costs 593,580 S 91,320 Allocation of Computing Department costs 712,920 109,680 Total costs allocated to each department S 1,306,500 S 201,000
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