Service Departments Operating Departments Administration Services Facility Undergraduate Graduate Programs Programs Departmentai costs before allocations Student credit-hours Space occupled-square feet . $2,400,000 $1,600,000 $26,800,000 $5,700,000 25,000 10,000 30,000 70,000
Service Departments Operating Departments Administration Services Facility Undergraduate Graduate Programs Programs Departmentai costs before allocations Student credit-hours Space occupled-square feet . $2,400,000 $1,600,000 $26,800,000 $5,700,000 25,000 10,000 30,000 70,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Direct Method
Seattle Western University has provided the following data to be used in its service department cost allocations:
Required:
Using the direct method, allocate the costs of the service departments to the two operating departments. Allocate the Administration cost on the basis of student credit-hours and the Facility Services cost on the basis of space occupied.
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