Seattle Western University has provided the following data to be used in its service department cost allocations:
Service Departments Operating Departments
Administration Facility Undergraduate Graduate
Services Programs 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
Using the direct method, allocate the costs of the service departments to the two operating departments. Allocate the Administration cost on the basis of student credit-hours and the Facility 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.)
