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State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departme (Deposits and Loans). A summary of costs and other data
State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departme (Deposits and Loans). A summary of costs and other data for each department prior to allocation of service department costs for th year ended December 31 follows. Administration $ 210,000 20,500 9 5,100 Communications $320,000 34,000 15 13,300 Facilities $ 253,000 21,000 Direct costs Employee hours Number of employees Square footage occupied Deposits $8,220,000 480,000 230 245,300 Loans $4,600,000 365,000 160 5,800 201,200 The costs of the service departments are allocated on the following bases: Administration, employee-hours; Communications, num of employees, and Facilities, square footage occupied. Required: a. Assume that the bank elects to distribute service department costs to production departments using the direct method. What amount of Communications Department costs is allocated to the Deposits Department? b. Assume the same method of allocation as in requirement (a). What amount of Administration Department costs is allocated to the Loans Department? c. Assuming that the bank elects to distribute service department costs to other departments using the step method (starting with Facilities and then Communications), what amount of Facilities Department costs is allocated to the Communications Department? d. Assume the same method of allocation as in requirement (C). What amount of Communication Department costs is allocated to Facilities? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Assume that the bank elects to distribute service department costs to production departments using the direct method. What amount of Communications Department costs is allocated to the Deposits Department? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Amount
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