4 Homework Seattle Western University has provided the following data to be used

Question

4 Homework Seattle Western University has provided the following data to be used in its service department cost allocations acility Undergraduate Graduate $2,400,0001, 600,000 $26,800,000 $5,700,000 5,000 30,000 Departmental coats before allocations 20,000 70,000 Space oceupied-square feet 25,000 10,000 Required: Using the direct method, allocate the costs of the service departments to the two operating departments. Allocate the Administration Services cost on the basis of space occupied. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations) Facility 1,800.000 ate Graduate Total before allocatons $ 2,400,000 26 800,000 5,700,000 $ 36.500,000 Total costs after $ 2,400,000 S 1.600 000|| $26.800.000 S 5,700.000 | 36500.000 0

Explanation / Answer

SOLUTION

Service Departments Service Departments Operating Departments Operating Departments Administrations Facilities services Undergraduate programs Graduate Programs Total Departmental cost before allocations 2,400,000 1,600,000 26,800,000 5,700,000 36,500,000 Allocations: Administration costs (20/25,5/25) (2,400,000) 1,920,000 480,000 Facility service cost (70/100, 30/100) (1,600,000) 1,120,000 480,000 Total costs after allocation 0 0 29,840,000 6,660,000 36,500,000

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