University has provided the following data to be used in its service department cost allocations:...
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Accounting
University has provided the following data to be used in its service department cost allocations:
Service Departments
Operating Departments
Administration
Facility Services
Undergraduate Programs
Graduate Programs
Departmental costs before allocations
$2,400,000
$1,600,000
$26,800,000
$5,700,000
Student credit-hours
20,000
5,000
Space occupiedsquare feet
25,000
10,000
70,000
30,000
Required:
Using the direct method, allocate the costs of the service departments to the two operating departments. Allocate the Administration cost on the basis of student credit-hours and the Facility Services cost on the basis of space occupied. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations.)
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