Question
Green Hills University offers only graduate-level programs. Green Hills has two principal operating departments, Business and Sciences, and two support departments, Maintenance and Admission Services.
Green Hills University offers only graduate-level programs. Green Hills has two principal operating departments, Business and Sciences, and two support departments, Maintenance and Admission Services. The base used to allocate Maintenance services is budgeted total maintenance hours. The base used to allocate Admission services is number of credit hours for a department. The Maintenance budget is $700,000, while the Admission Services budget is $j1,100,000. The following chart summarizes budgeted amounts and allocation-base amounts used by each department:
Services Provided: (Annually)
budget business sciences maintenance admission
service $600000 $4000 5000 0 5700
Maintenance
service( in hours)
Admission
services $950000 28000 32000 2500 0
i(n credit hours)
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, Business and Sciences.
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