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5. (20 pts) A university has two colleges and two service departments with the pertinent...

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Accounting

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5. (20 pts) A university has two colleges and two service departments with the pertinent information shown in the table. Public safety costs are allocated on the basis of rooms and library costs on the basis of students. Public Safety Library Liberal Arts Business Direct dept. costs $1,500,000 $1,000,000 $10,000,000 $8,000,000 Students 2,000 1,500 Rooms 100 60 20 a) Allocate service department costs using the direct method. b) Allocate service department costs using the step-down method. Start with public safety

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