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Seattle Western University has provided the following data to be used in its service department cost allocations: Service Departments Operating Departments Undergraduate Graduate Administration
Seattle Western University has provided the following data to be used in its service department cost allocations: Service Departments Operating Departments Undergraduate Graduate Administration Departmental costs before allocations $ 2,400,000 Facility Services $ 1,600,000 Programs Student credit-hours Space occupied-square feet 25,000 10,000 $ 26,800,000 20,000 70,000 Programs $ 5,700,000 5,000 30,000 Required: Using the direct method, allocate the costs of the service departments to the two operating departments. Allocate the Administration cost on the basis of student credit-hours and the Facility Services cost on the basis of space occupied. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations.) Service Departments Administration Facility Services Departmental costs before allocations $ 2,400,000 $ 1,600,000 Allocations: Administration costs Facility services costs Total costs after allocations Operating Departments Undergraduate Graduate Programs Programs Total $ 26,800,000 $ 5,700,000 $ 36,500,000 2,400,000 $ 1,600,000 $ 26,800,000 $ 5,700,000 $ 36,500,000
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