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 | Library | Computing Services ||---------------------|---------|--------------------|| **User of Service** | | || Library | – | 10% || Computing Services | – | – || Liberal Arts | 60% | 20% || Sciences | 40% | 70% |The budgeted costs in the two service departments for the year are as follows:| | ||----------------------|-------|| Library | $700,000 || Computing Services | $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 | | |

In the case of the direct method, the budgeted costs are allocated in direct proportion to service providers.Calculation of the budgeted cost by using the direct method: Excel calculations: Final values: Therefore, the total budgeted cost allocated to library and computing services are $480,000 and $490,000 respectively.

Business

Accounting

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: User of Service Library Computing Services Liberal Arts Sciences Library Computing Services Provider of Service Computing Library Services 10% The budgeted costs in the two service departments for the year are as follows: Provider of Service 60% 40% Library Computing Services Total $700,000 270,000 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.) 20% 70% Liberal Arts Sciences

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: User of Service Library Computing Services Liberal Arts Sciences Library Computing Services Provider of Service Computing Library Services 10% The budgeted costs in the two service departments for the year are as follows: Provider of Service 60% 40% Library Computing Services Total $700,000 270,000 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.) 20% 70% Liberal Arts Sciences

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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