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Step method Prosperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans). Monthly direct
Step method 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 10 Human resources Accounting Checking $1,188,000 792,000 10 660,000 10 22 1,386,000 742,500 10 30 10 10 40 888 40 10 30 20 30 20 20 Savings Loans 1,485,000 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 0 0 Loans 0 Total $ D Check G 521PM Algebraic method 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 below: Percentage of Service Used by 10 Department Direct Costs Admin. Human Resources Accounting Checking Savings Loans Administration $972,000 10 30 40 10 Human resources 648,000 10 10 30 20 30 Accounting 540,000 10 10 40 20 20 Checking 1,134,000 Savings 607.500 Loans 1,215,000 Compute the total cost for each revenue-generating area of the bank using the algbraic method. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. Note: Round your final answers below to the nearest 100; for example, round 8,668 to 8,700. Checking S Savings 0 0 0 Loans Total 0 G 922 PM 85F My dear 2002
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