Horn Bank Has Two Bank Locations: Main and Rural AUse the Direct Method to Allocate the Cheque-Processing Centre Costs

Horn Bank has two bank locations: Main and Rural.The central office provides cheque-processing services for the two banks.Information pertaining to the banks is as follows:
$\begin{array}{lccc}&\text { Cheque Processing}&\text { Main}&\text { Rural}\\\text { Budgeted fixed costs } & \$ 100,000 &-- &--\\ \text { Budgeted variable rate per hour } & \$ 20 & -- &--\\ \text { Normal usage in hours } &-- & 600 & 400 \\\\\text { Actual fixed costs } & \$ 107,500 &--&-- \\ \text { Actual variable costs } & \$ 17,500 &-- &-- \\ \text { Actual usage in hours } &--& 550 &250 \\\end{array}$

a.Use the direct method to allocate the cheque-processing centre costs to each bank to provide information for setting service charges.
b.Use the direct method to allocate the computer centre costs to each bank for performance evaluation purposes.
c.Determine the costs of the cheque-processing centre NOT allocated to the two banks.Why were these costs not allocated to the operating units?