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. Administration Communications Facilities Deposits Loans Direct costs $ 240,000 $ 270,000 $ 255,000 $ 8,320,000 $ 4,800,000 Employee hours 22,500 33,000 22,000 408,000 342,000 Number of employees 6 15 5 180 180 Square footage occupied 4,800 13,000 5,300 242,400 204,000 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?

7 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. 4 points Administration Communications Facilities Direct costs $240,000 $270,000 $255,000 Employee hours 22,500 33,000 22,000 Number of employees 15 5 Square footage occupied 4,800 13,000 5,300 Deposits Loans $8,320,000 $4,800,000 408,000 342,000 180 180 242,400 204,000 6 eBook Print 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 (9). 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 Required Required B >