Muskogee Savings and Loan
Muskogee Savings and Loan has three departments that generate revenue: loans, checking accounts, and savings accounts. Muskogee Savings and Loan has two service departments: Administration/Personnel and Maintenance. The service departments provide service in the order of their listing. The following information is available for direct costs. Administration/ Personnel costs are best allocated based on number of employees while Maintenance costs are best allocated based on square footage occupied.
Refer to Muskogee Savings and Loan. Using the direct method, compute the amount allocated to each department from Administration/Personnel.
Correct Answer:
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