Question
Seattle Western University has provided the following data to be used in its service department cost allocations: Service Departments Operating Departments Administration Facility Services Undergraduate
Seattle Western University has provided the following data to be used in its service department cost allocations: |
Service Departments | Operating Departments | |||
Administration | Facility Services | Undergraduate Programs | Graduate Programs | |
Departmental costs before allocations | $ 2,400,000 | $ 1,600,000 | $ 26,800,000 | $ 5,700,000 |
Student credit-hours | 20,000 | 5,000 | ||
Space occupiedsquare feet | 25,000 | 10,000 | 70,000 | 30,000 |
|
Required: |
Using the direct method, allocate the costs of the service departments to the two operating departments. Allocate the costs of Administration on the basis of student credit-hours and Facility Services costs 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.) |
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