University of Okoboji has two main schools (operating departments) - liberal arts and professional studies. It...

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University of Okoboji has two main schools (operating departments) - liberal arts and professional studies. It has two major support departments, Student Services (advising, counseling, career services, library), and Administration (President's office, development, external relations). Support departments Operating Schools Administration Student Services Liberal arts Professional Studies Budgeted costs before any Inter-department cost allocation $72,700 $234.400 $998,270 $489,860 Work supplied by administration Budgeted headcount 21 42 28 Work supplied by Student services 320 1920 1600 1. Allocate support department costs to the operating schools using the direct method Liberal Arts $ Professional Studies 2. Allocate support department costs to the operating schools using the step-down method, with administration costs allocated first. Liberal Arts $ Professional Studies University of Okoboji has two main schools (operating departments) - liberal arts and professional studies. It has two major support departments, Student Services (advising, counseling, career services, library), and Administration (President's office, development, external relations). Support departments Operating Schools Administration Student Services Liberal arts Professional Studies Budgeted costs before any Inter-department cost allocation $72,700 $234.400 $998,270 $489,860 Work supplied by administration Budgeted headcount 21 42 28 Work supplied by Student services 320 1920 1600 1. Allocate support department costs to the operating schools using the direct method Liberal Arts $ Professional Studies 2. Allocate support department costs to the operating schools using the step-down method, with administration costs allocated first. Liberal Arts $ Professional Studies

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Direct Method Under direct method service department costs are allocated to production departments but not to other service departments in the ratio o... View the full answer