Joe bank has two branches, main and country. His company has 3service departments, information tech (it), personnel
Question:
Joe bank has two branches, main and country. His company has 3service departments, information tech (it), personnel and finance. Data is as follows
DEPARTMENT COST # ITHOURS #EMPLOYEES # FINANCETRANS
IT $425,000 0 10 77
PERSONNEL $550,000 2333 0 85
FINANCE $742,000 1200 8 0
MAIN $800,000 3500 50 1200
COUNTRY $725,000 4500 35 1350
TOTALS $3,242,000 11533 103 2712
All costs are allocated to the two branches. It cost is allocated on # of it hours.
Personnel cost is allocated based on # of people
finance costs are allocated on # of finance transactions
Using the direct method what is the total cost that will be allocated to the two branches?
What is the total cost of each braches?
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton