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Gotham University offers only high - tech graduate - level programs. Gotham has two principal operating departments, Engineering and Computer Sciences, and two support departments,

Gotham University offers only high-tech graduate-level programs. Gotham 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 $350,000, while the Enrollment Services budget is $950,000. The following chart summarizes budgeted amounts and allocation-base amounts used by each department:
Services Provided: (Annually)
Budget Engineering
Computer
F&T
Sciences Maintenance
Enrollment
Service
F&7
Maintenance $350,000
(in hours)
1,000
2,000
Zero
5,000
Enrollment
Service (in credit hrs)
$950,000
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.Gotham University offers only high-tech graduate-level programs. Gotham 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 $350,000, while the Enrollment Services budget is $950,000. The
following chart summarizes budgeted amounts and allocation-base amounts used by each department:
Services Provided: (Annually)
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.
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