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Exercise 17-16 Step-Down Method of Service Department Cost Allocation; College (LO 17-1) Hudson Community College enrolls students In two departments, Liberal Arts and Sciences. The
Exercise 17-16 Step-Down Method of Service Department Cost Allocation; College (LO 17-1) 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 departments output for the year is as follows: Provider of Service Computing User of Service Library Services Library Computing Services Liberal Arts 30%% sciences 45% 50% The budgeted costs In the two service departments for the year are as follows: Library $980, 080 Computing Services 440, 080 Required: 1. Use the step-down method to allocate Hudson Community College's service department costs to the Liberal Arts and Sciences departments. (Do not round Intermediate calculations.) Answer is complete and correct. Liberal Arts Sciences Allocation of Computing Service costs S 132,000 5 220,000 Allocation of Library costs 587,400 480,600 Total costs allocated to each department 5 719,400 $ 700,600
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