Question
Ignatius College has provided the following data to be used in its service department cost allocations: Departmental costs before allocations *Service Dept Administration: $2,070,000 Physical
Ignatius College has provided the following data to be used in its service department cost allocations:
Departmental costs before allocations
*Service Dept
Administration: $2,070,000
Physical Plant Services: $720,000
*Operating Dept
Undergrad programs: $23,650,000 Student Credit Hrs: 40,000
Graduate programs:$2,980,000 Student Credit Hrs: 5,000
Space Occupied in square feet
*Service Dept
Administration: 30,000
Physical Plan: 5,000
*Operating Dept
Undergrad programs: 250,000
Graduate programs: 50,000
Using the direct method allocate the costs of the service departments to the two operating departments.Allocate the costs of the Administration Dept on the basis of student credit-hours and the costs of the Physical Plant Service Dept on the basis of space occupied.
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