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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 Using Department Department Processing Administration Maintenance Branches Electronic Processing 0 50 0 102 400 Administration 0 0 608 408 Maintenance 100 200 0 200 500 Direct cost $80,000 $500,000 $220,000 $4,000,000 $1,500,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. Allocated to: Processing Administration Branches Costs Electronic Maintenance Processing Administration Total S S 0

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