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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: Using Department Maintenance Processing Administration 60% Supplying Department Processing Administration Maintenance Direct cost 0 10% $97,000 Branches 20% 60% 15% $5,700,000 Electronic 20% 40% 60% $2,350,000 15% $670,000 $390,000 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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