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.

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