EXERCISE 4B-1 Direct Method LO4-10 Seattle Western University has provided the following data to be used in its service department cost allocations: Service Departments Facility Administration Services Operating Departments Undergraduate Graduate Programs Programs Departmental costs before allocations $2,400,000 $1,600,000 Student credit-hours 20,000 $26,800,000 $5,700,000 5,000 Space occupied-square 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. EXERCISE 48-2 Step-Down Method 104-11 Page 187