Direct method to allocate support costs

Reference no: EM13145901

Gotham University offers only high-tech graduate-level programs. Gotham has two principal operating departments, Engineering and Computer 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 $350,000, while the Enrollment Services budget is $950,000. The following chart summarizes budgeted amounts and allocation-base amounts used by each department:

Budget Services Provided: (Annually)

Engineering Computer Sciences F&T Maintenance Enrollment Service

F&T Maintenance

(in hours) $350,000 2,000 5,000 Zero 1,000

Enrollment Service

(in credit hrs) $950,000 24,000 36,000 2,000 Zero

Required:

Use the direct method to allocate support costs to each of the two principal operating departments, Engineering and Computer Sciences. Prepare a schedule showing the support costs allocated to each department.

Reference no: EM13145901

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