State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departments (Deposits and Loans). A summary of costs and other data for each department prior to allocation of service department costs for the year ended December 31 follows.     Administration Communications Facilities Deposits Loans Direct costs $ 210,000   $ 320,000   $ 253,000   $ 7,590,000   $ 5,400,000   Employee hours   21,000     31,000     21,000     416,000     357,000   Number of employees   8     17     7     190     160   Square footage occupied   4,600     14,500     5,200     246,900     202,900        The costs of the service departments are allocated on the following bases: Administration, employee-hours; Communications, number of employees; and Facilities, square footage occupied.   Required: a. Assume that the bank elects to distribute service department costs to production departments using the direct method. What amount of Communications Department costs is allocated to the Deposits Department? b. Assume the same method of allocation as in requirement (a). What amount of Administration Department costs is allocated to the Loans Department? c. Assuming that the bank elects to distribute service department costs to other departments using the step method (starting with Facilities and then Communications), what amount of Facilities Department costs is allocated to the Communications Department? d. Assume the same method of allocation as in requirement (c). What amount of Communication Department costs is allocated to Facilities?

State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departments (Deposits and Loans). A summary of costs and other data for each department prior to allocation of service department costs for the year ended December 31 follows.
 

  Administration Communications Facilities Deposits Loans
Direct costs $ 210,000   $ 320,000   $ 253,000   $ 7,590,000   $ 5,400,000  
Employee hours   21,000     31,000     21,000     416,000     357,000  
Number of employees   8     17     7     190     160  
Square footage occupied   4,600     14,500     5,200     246,900     202,900  
 

  

The costs of the service departments are allocated on the following bases: Administration, employee-hours; Communications, number of employees; and Facilities, square footage occupied.

 

Required:

a. Assume that the bank elects to distribute service department costs to production departments using the direct method. What amount of Communications Department costs is allocated to the Deposits Department?

b. Assume the same method of allocation as in requirement (a). What amount of Administration Department costs is allocated to the Loans Department?

c. Assuming that the bank elects to distribute service department costs to other departments using the step method (starting with Facilities and then Communications), what amount of Facilities Department costs is allocated to the Communications Department?

d. Assume the same method of allocation as in requirement (c). What amount of Communication Department costs is allocated to Facilities?

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