Seattle Western University has provided the following data to be used in its service department cost allocations:

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.

 

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Service Departments Operating Departments Facility Undergraduate Graduate Administration Services Programs 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 Service Departments Operating Departments Facility Undergraduate Graduate Administration Services Programs 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