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Question 5 Part A Marshall University offers only high-tech graduate-level programs. Marshall has two principal operating departments, Commerce and Social Sciences, and two support departments,

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Question 5 Part A Marshall University offers only high-tech graduate-level programs. Marshall has two principal operating departments, Commerce and Social 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 $500,000, while the Enrollment Services budget is $900,000. The following chart summarizes budgeted amounts and allocation-base amounts used by each department: Services Provided: (Annually) F&T Comm Social Enrollment Maintenan erce Sciences Service Budget ce Zero 5,000 F&T Maintenance $500,000 3,000 6,000 Kin hours) Enrollment Service $900,000 25,000 35,000 (in credit hrs) 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 to other support department concept. Compute the total amount of support costs allocated to each of the two principal operating departments, Commerce and Social Sciences. (11 marks) Tyst University offers only high tech graduate level programs. Tryst has two principal operating departments Engineering and Social 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 $150,000, while the Enrollment Services budget is $900.000. The following chart summarizes budgeted amounts and allocation base amounts used by each department Services Provided: (Annually) Social T&T Enrollment Sciences Maintenance Service 6,000 Zero 1000 HT Maintenance $150.000 in hours) Enrollment S000,000 25,000 35,000 2,000 Zero Kin credit Required: Use the direct method to allocate support costs to each of the two principal operating departments, Engineering and Social Sciences. Prepare a schedule showing the support costs allocated to each department. (9 marks)

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