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State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departments (Deposits and Loans). A summary of costs and other
State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departments (Deposits and Loans). A summary of costs and other data for each department prior to allocation of service department costs for the year ended December 31 follows. Direct costs Employee hours Number of employees Square footage occupied Administration $210,000 Communications $330,000 29,000 9 4,700 36,000 11 13,100 Facilities $256,000 21,500 Deposits 4 5,300 482,000 190 244,600 Loans $8,020,000 $5,000,000 301,000 140 201,800 The costs of the service departments are allocated on the following bases: Administration, employee-hours; Communications, number 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 Dound your final anewer to the nearest whole dollar amount \
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