Exercise 17-15 Direct 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 servicedepartments, the Library and the Computing Services Department. The usage of these two service departments' output for the year Isas follows:Provider of ServiceComputingServicesUser of ServiceLibraryComputing ServicesLiberal ArtsSciencesLibrary20%60%30%50%40%The budgeted costs in the two service departments for the year are as follows:Library$680, 000270, 000Corputing ServicesRequired:1. Use the direct method to allocate the budgeted costs of the Library and Computing Services Department to the college's LiberalArts and Sciences departments. (Do not round intermediate colculations.)Provider of ServiceLiberal ArtsSciencesLibraryComputing ServicesTotal%24

In case of direct method the Budgeted costs are allocated on direct proportion to service…

Exercise 17-15 Direct 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 Services User of Service Library Computing Services Liberal Arts Sciences Library 20% 40% The budgeted costs in the two service departments for the year are as follows: Library Corputing Services $680,000 270, 000 Required: 1. Use the direct method to allocate the budgeted costs of the Library and Computing Services Department to the college's Liberal Arts and Sciences departments. (Do not round intermediate calculations.) Provider of Service Liberal Arts Sciences Library Computing Services Total

Exercise 17-15 Direct 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 Services User of Service Library Computing Services Liberal Arts Sciences Library 20% 40% The budgeted costs in the two service departments for the year are as follows: Library Corputing Services $680,000 270, 000 Required: 1. Use the direct method to allocate the budgeted costs of the Library and Computing Services Department to the college's Liberal Arts and Sciences departments. (Do not round intermediate calculations.) Provider of Service Liberal Arts Sciences Library Computing Services Total

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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