Manzano Bank has two operating departments (Branches and Electronic) and three s

Question

Manzano Bank has two operating departments (Branches and Electronic) and three service departments (Processing, Administration, and Maintenance). During November, the following costs and service department usage ratios were recorded:

Allocate the service department costs to the two operating departments using the reciprocal method.

Manzano Bank has two operating departments (Branches and Electronic) and three service departments (Processing, Administration, and Maintenance). During November, the following costs and service department usage ratios were recorded:

Explanation / Answer

Processing 150000+10% of Maintenance 180000 Administration 720000+50%of Processing +20% ofMaintenance 870000 Maintenance 300000 300000 Costs Cost Processing Administration Branches Electronic Maintenance 300000 30000 60000 60000 150000 Processing 180000 0 90000 18000 72000 Administration 870000 0 0 522000 348000 Total 600000 570000

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