A. Using the direct method, how much support cost would be allocated to engineering and how much to social sciences?

B. Using the step-down method where you allocate F&T maintenance first, how much support cost would be allocated to engineering and how much to social sciences?

C. If you were to use the reciprocal method, how much cost would you allocate out of F&T maintenance and how much would you allocate out of enrollment service

Problem 8 (9 points) Suppose that Northern Michigan University offers only high-tech graduate-level programs. NMU has two principal operating departments, Engineering and Social 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 $450,000, while the Enrollment Services budget is $900,000. The following chart summarizes budgeted amounts and allocation-base amounts used by each department: Services Provided: (Annually) Budget Engineering F&T Maintenance Enrollment Service Engineering Social Sciences F&T Maintenance (in hours) $450,000 3,000 6,000 Zero 1,000 Enrollment Service in credit hrs) $900,000 25,000 35,000 2,000 Zero