Seattle Western University has provided the following data to be used in its service department cost allocations:
|
Service Departments
|
Operating Departments
|
|
Administration |
Facility
Services |
Undergraduate
Programs |
Graduate
Programs |
| Departmental costs before allocations |
$ 2,400,000 |
$ 1,600,000 |
$ 26,800,000 |
$ 5,700,000 |
| Student credit-hours |
|
|
20,000 |
5,000 |
| Space occupied-square feet |
25,000 |
10,000 |
70,000 |
30,000 |
Required:
Using the direct method, allocate the costs of the service departments to the two operating departments. Allocate the costs of Administration on the basis of student credit-hours and Facility Services costs 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.)