Exercise 4B-1 (Static) Direct Method [LO4-10]

Seattle Western University provided the following data for its service department cost allocations:

	Service Departments	Operating Departments
Administration	Facility Services	Undergraduate Programs	Graduate 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 occupiedsquare feet	25,000	10,000	70,000	30,000

Required:

Using the direct method, allocate the costs of the service departments to the two operating departments. Allocate the Administration cost based on student credit-hours and the Facility Services cost based on space occupied.

Note: Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations.