Chapter 17, Problem 16E

Refer to the data given in the preceding exercise.

Required:

1. 1. Use the step-down method to allocate Hudson Community College’s service department costs to the Liberal Arts and Sciences departments.
2. 2. Build a spreadsheet: Construct an Excel spreadsheet to solve the preceding requirement. Show how the solution will change if the following information changes: the budgeted costs of the Library and Computing Services are $590,000 and $280,000, respectively.