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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

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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 and service department usage ratios were recorded: Supplying Department Processing Administration Maintenance Direct cost Processing 0 0 10% $100,000 Administration 50% 0 15% $700,000 Using Department Maintenance 0 0 Branches 10% 60% 15% $6,000,000 Electronic 40% 40% 60% $2,500,000 $420,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. Allocated to: Administration Branches Costs Processing Electronic Maintenance Processing Administration Total

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