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Manzano Bank has two operating departments (Branches and Electronic) and three service departments Processing, Administration, and Maintenance). During November, the following costs and service department
Manzano Bank has two operating departments (Branches and Electronic) and three service departments Processing, Administration, and Maintenance). During November, the following costs and service department usage ratios were recorded Using Department Supplying Department Processing Administration Maintenance Direct cost ing Administration Msintenance Bra 0 Branches Electronic Administration 50% Maintenance 10% 60% 20% 40% 40% 50% 10% 20% $120,000 $751,000 $332,000 $6200,000 $2 300,000 The cost accountant at Manzano Bank estimates that the cost structures in their departments are as Processing Administration Maintenance Branches Vaniable costs s 81,000 $240,000 39 000 511,000 $179,000 153 000 $2.800.000 3 400.000 1.150 000 1,150 000 Fixed costs Total costs Avcidable fxed costs s 14 000 $401 000 $120,000$ $ 120,000 $751 000 332.000 6.200000 2300 000 s2 135 000 s 940 000 132 000 $0200,000 2 300 000 000 $332,000 Required ura Denartment what is the maxmum they can pay an outside
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