Aurora National Bank has two service departments, the Human Resources (HR) Department and the Computing Department. The
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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:
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The budgeted costs in the two service departments for the year are as follows:
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Required: Use the direct method to allocate the budgeted costs of the Human Resources and computing departments to the Deposit and Loan departments.
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Under direct method the service department costs are allocated only to the direct customer service departments ie Deposit and Loan Departments We igno...View the full answer
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Related Book For 
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078025662
10th edition
Authors: Ronald Hilton, David Platt
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