Exercise 13-28 Name:
Insert your answers in the gray-shaded cells. Insert formulas where
appropriate. If an answer is incorrect, the word “wrong” will appear.
Amount x Percent = Allocation
Administration:
Personnel 540,000$ 10% 54,000$
Accounting 540,000 10% 54,000
Checking 540,000 30% 162,000
Savings 540,000 40% 216,000
Loans 540,000 10% 54,000
Total 100% 540,000$
Personnel:
Accounting 414,000$ 11% 46,000$
Checking 414,000 33% 138,000
Savings 414,000 22% 92,000
Loans 414,000 33% 138,000
Total 100% 414,000$
Accounting:
Accounting 400,000$ 50% 200,000$
Checking 400,000 25% 100,000
Loans 400,000 25% 100,000
Total 100% 400,000$
Total cost for each revenue-generating area:
Checking: 1,130,000$
Savings: 745,500$
Loans: 967,000$
Solution
Cost Allocation using Step Method