Refer to the data given in the preceding exercise.

The budgeted costs in the two service departments for the year are as follows:
HR ..........$153,000
Computing .......2290,500

Required:
Use the step-down method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments. Tuscaloosa National Bank allocates the costs of the HR Departmentfirst.

Transcribed Image Text:

Provider of Service User of Service HR Computing Deposit Loan. HR Computing 15% 60% 30% 50% 35%