Ignatius College 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 the Administration Department on the basis of student credit-hours and the costs of the Physical Plant Services Department on the basis of spaceoccupied.

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Service Departments Operating Departments Physical Plant Undergraduate Graduate Programs Administration Services Programs Departmental costs before allocations Student credit-hours Snace occunied in snuAre $2,070,000 $720,000 $23,650,000 2,980,000 5,000 40,000