Question: Marshall University offers only high-tech graduate-level programs. Marshall has two principal operating departments, Engineering and Social Sciences, and two support departments, Facility and Technology Maintenance

Marshall University offers only high-tech graduate-level programs. Marshall 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

Social Sciences

F&T Maintenance

Enrollment Service

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

Required:

Use the direct method to allocate support costs to each of the two principal operating departments, Engineering and Social Sciences. Prepare a schedule showing the support costs allocated to each department.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!