Question: Step 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

Step 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 costs and the interdepartmental support structure are shown in the following benefits-provided ranking:

Percentage of Service Used by
Department Direct Costs Admin. Human Resources 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 area of the bank using the step-method of cost allocation.

Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar.

Checking

Answer

Savings

Answer

Loans

Answer

Total

Answer

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