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Munoz Trust Corporation has two service departments: actuary and economic analysis. Munoz also has three operating departments: annuity, fund management. and employee benefit services. The
Munoz Trust Corporation has two service departments: actuary and economic analysis. Munoz also has three operating departments: annuity, fund management. and employee benefit services. The annual costs of operating the service departments are $552000 for actuary and $897,000 for economic analysis. Munoz uses the direct method to allocate service center costs to operating departments. Other relevant data follow. Operating Costs\" Revenue Annuity $ 600,900 5 9?0,0-- Fund management 1,000,900 1,290,000 Employee bene'Fit services ?00,!00 1,190,000- \"The operating costs are measured before allocating service center costs. Required 6. Use operating costs as the cost driver for allocating service center costs to operating departments. In. Use revenue as the cost drivertor allocating service center costs to operating departments. a. Use operating costs as the cost driver for allocating service center costs to operating departments. In. Use revenue as the cost driver for allocating service center costs to operating departments. Complete this question by entering your answers in the labs below. Required A Required B Use operating oosts as the cost driver for allocating service center costs to operating departments. Note: Round "Allocation Rate" to 2 decimal places. annuity.r Fund management EElS EEK IIIIII Total allocated cost annuity.r Fund management EElS Total allocated cost _I_H_ _I_H- _I_H- Required B > a. Use operating costs as the cost driver for allocating service center costs to operating departments. In. Use revenue as the cost driverfor allocating service center costs to operating departments. Complete this question by entering your answers in the labs below. Required A Required B Use revenue as the cost driver for allocating service center costs to operating departments. Note: Round "Allocation Rate" to 2 decimal places. Fund management DEED Total allocated cost $ [J Fund management 0 U D Total allocated cost $ ( RequiredA
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