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2. s) Gotham University offers only high-tech graduate-level programs. Gotham has two principal operating departments, Engine
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a.

F&T Maintenance cost allocated to Engineering = $350,000 * 1,000 / 3,000 = $116,667

F&T Maintenance cost allocated to Computer sciences = $350,000 * 2,000 / 3,000 = $233,333

Enrollment service cost allocated to Engineering = $950,000 * 36,000 / 60,000 = $570,000

Enrollment service cost allocated to Computer sciences = $950,000 * 24,000 / 60,000 = $380,000

b.

Enrollment service F&T Maintenance Engineering Computer sciences
Department cost before allocation $950,000 $350,000
Enrollment service cost allocated ($950,000) $30,645 ($950,000*2,000/62,000) $551,613 ($950,000*36,000/62,000) $367,742 ($950,000*24,000/62,000)
F&T maintenance cost allocated ($380,645) $126,882 ($380,645*1,000/3,000) $253,763 ($380,645*2,000/3,000)
Total cost allocated $678,495 $621,505
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