Company Ltd. has two service departments, Facilities Management and Faculty Relations.

It also has two operating departments, Science and Management Studies. The Facilities

Management budgeted overhead is allocated based on the number of square meters of space

occupied. The Faculty Relations allocation is based on the number of employees. Show all calculations.

Facilities Management Staff Department:

Square meters of Space 5,000

Number of Employees 20

Budgeted Overhead $70,000

Faculty Relations Department:

Square meters of Space 15,000

Number of Employees 30

Budgeted Overhead $150,000

Science Department:

Square meters of Space 35,000

Number of Employees 125

Budgeted Overhead $222,000

Management Studies Department:

Square meters of Space 42,000

Number of Employees 180

Budgeted Overhead $285,000

Totals:

Total Square meters of Space 97,000

Total Number of Employees 355

Total Budgeted Overhead $727,000

1) Using the direct method, what is the total cost for the Science Department?

2) Using the step method, what is the total cost for the Management Studies Department?