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Direct 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 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 $972,000 10 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 direct method. Checking X Savings Loans $ Total X X X
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