Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Prosperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans). Monthly direct costs and
Prosperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans). Monthly direct costs and the interdepartmental support structure are shown in the following benefits-provided ranking:
Percentage of Service Used by | |||||||
---|---|---|---|---|---|---|---|
Department | Direct Costs | Admin. | Human Resources | Accounting | Checking | Savings | Loans |
Administration | $1,404,000 | 10 | 10 | 30 | 40 | 10 | |
Human resources | 936,000 | 10 | 10 | 30 | 20 | 30 | |
Accounting | 780,000 | 10 | 10 | 40 | 20 | 20 | |
Checking | 1,638,000 | ||||||
Savings | 877,500 | ||||||
Loans | 1,755,000 |
Compute the total cost for each revenue-generating area of the bank using the step-method of cost allocation.
Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar.
Checking | ? |
Savings | ? |
Loans | ? |
Total | ? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started