Reference no: EM132984288

Secure Bank has two support departments: the human resources department and the computing department. L07.10 The bank also has two departments that service customers directly: the deposits department and the loans department.

Usage of the two support departments' output in the year just ended was as follows:

                                                                                          Provlder of servlce
                                               User of servlce Human resources          Computlng
Human resources                                    0                                      20%
Computing                                              20%                                       0
Deposits                                               50%                                      60%
Loans                                                   30%                                     20%

The budgeted costs in the two support departments for the year just ended were:

Human resources $720000
Computing 1200000

Problem 1: Use the reciprocal services method to allocate the budgeted costs of the human resources and computing departments to the deposits and loans departments.