EXERCISE 4B-1 Direct Method [LO10] Ignatius College has provided the following data to be used in its service department cost allocations: Service Departments Operating Departments Physical Plant Undergraduate Graduate Programs Administration Services Programs Departmental costs before allocations..... Student credit-hours...... Space occupied in square feet ... $2,070,000 $720,000 $23,650,000 $2,980,000 40,000 5,000 30,000 5,000 250,000 50,000 Required: Using the direct method, allocate the costs of the service departments to the two operating depart- ments. Allocate the costs of the Administration Department on the basis of student credit-hours and the costs of the Physical Plant Services Department on the basis of space occupied.
EXERCISE 4B-1 Direct Method [LO10] Ignatius College has provided the following data to be used in its service department cost allocations: Service Departments Operating Departments Physical Plant Undergraduate Graduate Programs Administration Services Programs Departmental costs before allocations..... Student credit-hours...... Space occupied in square feet ... $2,070,000 $720,000 $23,650,000 $2,980,000 40,000 5,000 30,000 5,000 250,000 50,000 Required: Using the direct method, allocate the costs of the service departments to the two operating depart- ments. Allocate the costs of the Administration Department on the basis of student credit-hours and the costs of the Physical Plant Services Department on the basis of space occupied.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![EXERCISE 4B-1 Direct Method [LO10]
Ignatius College has provided the following data to be used in its service department cost allocations:
Service Departments
Operating Departments
Physical Plant Undergraduate
Services
Graduate
Administration
Programs
Programs
Departmental costs before
$2,070,000
$720,000
$23,650,000 $2,980,000
40,000
allocations......
Student credit-hours.
Space occupied in square
feet ...
5,000
30,000
5,000
250,000
50,000
Required:
Using the direct method, allocate the costs of the service departments to the two operating depart-
ments. Allocate the costs of the Administration Department on the basis of student credit-hours
and the costs of the Physical Plant Services Department on the basis of space occupied.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1973fde8-8584-4df7-beaa-a748e5ef55b8%2F00354ef1-94f9-41cd-8165-99d5e376b653%2Fgdmyyid_processed.jpeg&w=3840&q=75)
Transcribed Image Text:EXERCISE 4B-1 Direct Method [LO10]
Ignatius College has provided the following data to be used in its service department cost allocations:
Service Departments
Operating Departments
Physical Plant Undergraduate
Services
Graduate
Administration
Programs
Programs
Departmental costs before
$2,070,000
$720,000
$23,650,000 $2,980,000
40,000
allocations......
Student credit-hours.
Space occupied in square
feet ...
5,000
30,000
5,000
250,000
50,000
Required:
Using the direct method, allocate the costs of the service departments to the two operating depart-
ments. Allocate the costs of the Administration Department on the basis of student credit-hours
and the costs of the Physical Plant Services Department on the basis of space occupied.
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