Aurora National Bank has two service departments, the Human Resources (HR) Depar
ID: 2533536 • Letter: A
Question
Aurora National Bank has two service departments, the Human Resources (HR) Department and the Computing Department. The bank has two other departments that directly service customers, the Deposit Department and the Loan Department. The usage of the two service departments’ output for the year is as follows:
The budgeted costs in the two service departments for the year are as follows:
Use the direct method to allocate the budgeted costs of the Human Resources and Computing departments to the Deposit and Loan departments. (Do not round intermediate calculations.)
Aurora National Bank has two service departments, the Human Resources (HR) Department and the Computing Department. The bank has two other departments that directly service customers, the Deposit Department and the Loan Department. The usage of the two service departments’ output for the year is as follows:
Explanation / Answer
Use the direct method to allocate the budgeted costs of the Human Resources and Computing departments to the Deposit and Loan departments
Deposit Loan Human resources 165000*60/90 = 110000 55000 Computing 240000*45/80 = 135000 240000*35/80 = 105000 Total 245000 160000Related Questions
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