Problem

Direct MethodIgnatius College has provided the following data to be used in its service de...

Direct Method

Ignatius College has provided the following data to be used in its service department cost allocations:

 

Service Departments

Operating Departments

 

Administration

Physical Plant Services

Undergraduate  Programs

Graduate Programs

Departmental costs before allocations

$2,070,000

$720,000

$23,650,000

$2,980,000

Student credit-hours

 

 

40,000

5,000

Space occupied in square feet

30.000

5,000

250.000

50.000

Required:

Using the direct method, allocate the costs of the service departments to the two operating departments. Allocate the costs of the Administration Department on the basis of student credit-hours and the costs of the Physical Plant Services Department on the basis of space occupied.

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search
Solutions For Problems in Chapter 4B