Question 16 Fag question Lite Mountain University (LMU") has two service departments-the Library and Computing Services-which assist the S Time left 0:17:56 Business and the School of Health, Budgeted costs of the Library and Computing Services are $800,000 and $1,600,000, respectively Usage of the service departments output during the year is anticipated to be: (10 marks) Library Computing Services School of Business School of Health Provider of Service Library 30% Direct method 70% Computing Services 30% - 40% 30% Required: a Use the direct method to allocate the costs of the Library and Computing Services to the School of Business and the School of Health b. Repeat requirement "a, using the step-down method. LMU allocates the cost of Computing Services first. A BI D EESS FOREIOCOF #X Allocation of computing services cost Allocation of library cost 5 D US X X library O Ft T: Services H EE

Resand: A. 8 I 18 is a