Seattle Western University has provided the following data to be used in its service department cost allocations:
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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 Programs | Graduate Programs | ||
Departmental costs before allocations | $1,200,000 | $3,000,000 | $23,100,000 | $5,000,000 | |
Student credit-hours | 21,000 | 4,000 | |||
Space occupied—square feet | 3,400 | 3,700 | 2,000 | 18,000 | |
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.
Related Book For
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer
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