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Great Eastern Credit Union (GECU) has two operating departments (Branches and Electronic) and three service departments (Processing, Administration, and Maintenance). During July, the following costs
Great Eastern Credit Union (GECU) has two operating departments (Branches and Electronic) and three service departments (Processing, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded Supplying Administration Maintenance Branches 50% 0 15% 10% 60% 15% Administration Maintenance Direct cost 0 4% 60% 10% $85,000 $550,000 $270,000 $4,500,000 $1,750,000 Required Allocate the service department costs to the two operating departments using the reciprocal method Allocated to Costs Processing Administration Branches Electronic Maintenance Processing Administration Total
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