Human Resources Accounting Checking Savings Loans Administration $540,000 10 10 30 40 10 Human resources 360,000 10
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 | $540,000 | 10 | 10 | 30 | 40 | 10 | |
| Human resources | 360,000 | 10 | 10 | 30 | 20 | 30 | |
| Accounting | 300,000 | 10 | 10 | 40 | 20 | 20 | |
| Checking | 630,000 | ||||||
| Savings | 337,500 | ||||||
| Loans | 675,000 |
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 | Answer
|
| Savings | Answer
|
| Loans | Answer
|
| Total | Answer
|
Please show all work step by step calculations! Thank you!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Please Show all work step by step calculations! thank you! I know where answers for first and second row coming from. However, numbers for third and fourth row don't make any sence to me. Please explain detail by detail!
by Bartleby Expert
