Hudson Community College enrolls students in two department Liberal Arts and Sciences. The college also has two service departments the Library and the Computing Services Department. The usage of these two service departments’ output for the year is as follows:
Provider of Service | ||
User of Service | Library | Computing Services |
Library | – | 20% |
Computing Services | – | – |
Liberal Arts | 60 | 30% |
Science | 40% | 50% |
The budgeted costs in the two service departments for the year are as follows:
Library | $600.000 |
Computing Services | 240.000 |
Required:
1. Use the direct method to allocate the budgeted costs of the Library and Computing Services Department to the college’s Liberal Arts and Sciences departments.
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
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