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Exercise 4B-1 (Static) Direct Method [LO 4-10] 5 points Seattle Western University has provided the following data to be used in its service department cost
Exercise 4B-1 (Static) Direct Method [LO 4-10] 5 points Seattle Western University has provided the following data to be used in its service department cost allocations: Service Departments Operating Departments Facility Undergraduate Graduate Administration Services Programs Programs Departmental costs before allocations $2,400,000 $1,600,000 Student credit hours $26,800,000 $5,700,000 20,000 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. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round Intermediate calculations.) Answer is complete but not entirely correct. Service Departments Operating Departments Administration Facility Undergraduate Graduate Services Programa Programa S 2,400,000 $ 1,600,000 $ 26,800,000 $ 5,700,000 Total $36,500.000 Departmental costs before allocations Allocations: Administration costs Facility services costs Total costs after allocations 2,400,000 1,600,000 3 $ 3.200,000 1920.000 1,120,000 29,140,000 480,000 480,000 $ 5.000.000 5 4.800,000 5 $44.500.000
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