Question
Secure Bank has two support departments: the human resources department and the computing department. L07.10 The bank also has two departments that service customers directly:
Secure Bank has two support departments: the human resources department and the computing department. L07.10 The bank also has two departments that service customers directly: the deposits department and the loans department. Usage of the two support departments' output in the year just ended was as follows:
Provlder of servlce
User of servlce Human resources Computlng
Human resources 0 20%
Computing 20% 0
Deposits 50% 60%
Loans 30% 20%
The budgeted costs in the two support departments for the year just ended were:
Human resources $720000
Computing 1200000
Q:
Use the reciprocal services method to allocate the budgeted costs of the human resources and computing departments to the deposits and loans departments.
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