Allocate the costs of administration on the basis of

Reference no: EM13589953

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 occupied-square 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.)

Reference no: EM13589953

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