Hudson Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two service departments, the Library and the Computing Services Department. The usage of these two service department’s output for the year is as follows:

The budgeted costs in the two service departments for the year are as follows:
Library ............$600,000
Computing Services ....... 240,000
Required:
Use the direct method to allocate the budgeted costs of the Library and Computing Services Department to the college’s Liberal Arts and Sciencesdepartments.

Transcribed Image Text:

Provider of Service Library User of Service Library Computing Services Computing Services 20% 60% 40% 30% 50% Liberal Arts Sciences