Question: Prosperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans). Monthly direct costs and

Prosperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans). Monthly direct costs and the interdepartmental support structure are shown in the following benefits-provided ranking:

Compute the total cost for each revenue-generating area of the bank using the directmethod.

PERCENTAGE OF SERVICE USED BY Direct Human Department Costs Admin. Resources Accounting Checking Savings Loans Administration $540,000 Human 10 10 30 40 10 resources 360,000 Accounting 300,000 0 Checking 630,000 Savings Loans 10 30 20 30 10 40 20 20 337,500 675,000

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Checking Administration 30 0 80 x 540000 202500 Human Resources 30 080 x 360000 135000 Acco... View full answer

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