Aurora National Bank has two service departments, the Human Resources (HR) Depar
ID: 2533540 • 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:
Use the step-down method to allocate the budgeted costs of the Human Resources and Computing departments to the Deposit and Loan departments. Aurora National Bank allocates the costs of the Human Resources Department first. (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 step-down method to allocate the budgeted costs of the Human Resources and Computing departments to the Deposit and Loan departments. Aurora National Bank allocates the costs of the Human Resources Department first
Human resources Computing Deposit Loan Department cost 477000 715000 Allocation of human resources cost -477000 47700 286200 143100 Allocation of computing cost -762700 381350 381350 Total - - 667550 524450Related Questions
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