Question: Direct Method Prosperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans). Monthly direct
Direct Method Prosperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans). Monthly direct deposit costs and the interdepartmental support structure are shown in the following benefits-provided ranking:
| Percentage of Service Used By | |||||||
| Department | Direct Cost | Admin. | Human Resource | Accounting | Checking | Savings | Loans |
| Administration | $540,000 | 10 | 10 | 30 | 40 | 10 | |
| Human Resources | $360,000 | 10 | 10 | 30 | 20 | 30 | |
| Accounting | $300,000 | 10 | 10 | 40 | 20 | 20 | |
| Checking | $630,000 | ||||||
| Savings | $337,500 | ||||||
| Loans | $675,000 |
Compute the total cost for each revenue-generating are of the bank using the direct method.
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