Question: would like help understanding how to calculate the attached Exercise 17-16 Step-Down Method of Service Department Cost Allocation; College (LO 17-1) Hudson Community College enrolls
would like help understanding how to calculate the attached


Exercise 17-16 Step-Down Method of Service Department Cost Allocation; College (LO 17-1) Hudson Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two service departments, the Library and the Computing Services Department. The usage of these two service departments' output for the year is as follows: Provider of Service Computing User of SerViCe Library Services Library 20% Computing Services Liberal Arts 60% 30% Sciences 40% 50% The budgeted costs in the two service departments for the year are as follows: Library $990,000 Computing Services 450,000 Required: 1. Use the step-down method to allocate Hudson Community College's service department costs to the Liberal Arts and Sciences ,I,,,,,;,,,,,;, In, iiiiiwiin e,,-,,,,,,,,u,;, Lili,,|,-ei,ii n Provider (if Service- Comp'uting ' User of Service- Libi'ary Sewices Library 7 20% Computing Services - Liberal Arts 60% 30% Sciences 40% 50% The budgeted costs in the two service departments for the year are as follows: Library $990,000 Computing Services 450,000 Required: 1. Use the step-down method to allocate Hudson Community College's service department costs to the Liberal Arts and Sciences departments. (Do not round intermediate calculations.) Allocation of Computing Service costs Allocation of Library costs Total costs allocated to each department
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