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My Maintenance numbers are correct but I can't figure out processing and administration. Great Eastern Credit Union (GECU) has two operating departments (Branches and Electronic)
My Maintenance numbers are correct but I can't figure out processing and administration.
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 Supplying Department Processing Administration Maintenance Branches Electronic Processing Administration Maintenance Direct cost 40% 0 15% 15% 60% 20% 45 40% 60% 0 15% $87,000 $570,000 $290,000 $4,700,000 $1,850,000 Required Allocate the service department costs to the two operating departments using the reciprocal method Allocated to Costs Processing AdministratiBnanches Electronic Maintenan $ 290,000 S 43,500 43,500 52,200 58,000 $ 145,000 58,725 0388,980259,320 S 466,555$ 463,045 rocessing 130,500 19,575 Administration 648,300 TotalStep by Step Solution
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