Question
Armidale University offers only high-tech graduate-level programs. Armidale has two principal operating departments, Engineering and Computer Sciences, and two support departments, Facility and Technology Maintenance
Armidale University offers only high-tech graduate-level programs. Armidale has two principal operating departments, Engineering and Computer Sciences, and two support departments, Facility and Technology Maintenance and Enrollment Services. The base used to allocate Facility and Technology Maintenance is budgeted total maintenance hours. The base used to allocate Enrollment Services is number of credit hours for a department. The Facility and Technology Maintenance budget is $500,000, while the Enrollment Services budget is $1,200,000. The following chart summarises budgeted amounts and allocation- base amounts used by each department:
Services Provided (Annually) | |||||
Budget | Engineering | Computer Sciences | F&T Maintenanc e | Enrollment Services | |
F&T Maintenance(in hours) | $500,000 | 1,000 | 2,000 | Zero | 5,000 |
Enrollment Services (in credit hrs) | $1,200,000 | 24,000 | 36,000 | 2,000 | Zero |
Required: Prepare a schedule which allocates service department costs using the step-down method with the sequence of allocation based on the highest-percentage support concept. Compute the total amount of support costs allocated to each of the two principal operating departments, Engineering and Computer Sciences.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started