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Gotham University offers only high-tech graduate-level programs. Gotham has two principal operating departments, Engineering and Computer 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 $350,000, while the Enrollment Services budget is $950,000. The following chart summarizes budgeted amounts and allocation-base amounts used by each department: Services Provided: (Annually) Computer F&T Enrollment Sciences Maintenance Service Budget Engineering. F&T Maintenance $350,000 1,000 (in hours) Enrollment Service On credit hrs) $950,000 24,000 2,000 36,000 Zero 4,000 5,000 Zero

Gotham University offers only high-tech graduate-level programs. Gotham has two principal operating departments, Engineering and Computer 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 $350,000, while the Enrollment Services budget is $950,000. The following chart summarizes budgeted amounts and allocation-base amounts used by each department: Services Provided: (Annually) Computer F&T Enrollment Sciences Maintenance Service Budget Engineering. F&T Maintenance $350,000 1,000 (in hours) Enrollment Service On credit hrs) $950,000 24,000 2,000 36,000 Zero 4,000 5,000 Zero

FINANCIAL ACCOUNTING
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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Gotham University offers only high-tech graduate-level programs. Gotham has two principal operating departments, Engineering and Computer 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 $350,000, while the Enrollment Services budget is $950,000. The following chart summarizes budgeted amounts and allocation-base amounts used by each department: Services Provided: (Annually) Budget Engineering FÖT Maintenance $350,000 1,000 (in hours) Enrollment Service in credit hrs) Computer F&T Enrollment Sciences Maintenance Service 2,000 36.000 $950,000 24,000 Zero 4,000 5,000 Zero Required Prepare a schedule which allocates service department costs using the reciprocal method. Compute the total amount of support costs allocated to each of the two principal operating departments Engineering and Computer Sciences
Transcribed Image Text:Gotham University offers only high-tech graduate-level programs. Gotham has two principal operating departments, Engineering and Computer 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 $350,000, while the Enrollment Services budget is $950,000. The following chart summarizes budgeted amounts and allocation-base amounts used by each department: Services Provided: (Annually) Budget Engineering FÖT Maintenance $350,000 1,000 (in hours) Enrollment Service in credit hrs) Computer F&T Enrollment Sciences Maintenance Service 2,000 36.000 $950,000 24,000 Zero 4,000 5,000 Zero Required Prepare a schedule which allocates service department costs using the reciprocal method. Compute the total amount of support costs allocated to each of the two principal operating departments Engineering and Computer Sciences
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