14) Gotham University offers only high-tech graduate-level programs. Gotham has two principal operating departments, Engineering and Computer Sciences, and two support departments, Facility and Technology Maintenance and Enrollment Services. The base used to allocate facility and technology maintenance is budgeted total maintenance hours. The base used to allocate enrollment services is number of credit hours for a department. The Facility and Technology Maintenance budget is $350,000, while the Enrollment Services budget is $950,000. The following chart summarizes budgeted amounts and allocation-base amounts used by each department: Services Provided: (Annually) Computer F&T Enrollment Budget Engineering Sciences Maintenance Service Engineering Computer Sciences F&T Maintenance (in hours) Enrollment Service (in credit hrs) $3,500,000 $1,400,000 $350,000 2,000 1,000 Zero 5,000 $950,000 24,000 36,000 2,000 Zero Required: Determine total costs for each department by solving the equations using the reciprocal method. (Engineering= Eng; Computer Sciences CS; Facility and Technical Maintenance = FTM; Enrollment Service = ES)

14) Gotham University offers only high-tech graduate-level programs. Gotham has two principal operating departments, Engineering and Computer Sciences, and two support departments, Facility and Technology Maintenance and Enrollment Services. The base used to allocate facility and technology maintenance is budgeted total maintenance hours. The base used to allocate enrollment services is number of credit hours for a department. The Facility and Technology Maintenance budget is $350,000, while the Enrollment Services budget is $950,000. The following chart summarizes budgeted amounts and allocation-base amounts used by each department: Services Provided: (Annually) Computer F&T Enrollment Budget Engineering Sciences Maintenance Service Engineering Computer Sciences F&T Maintenance (in hours) Enrollment Service (in credit hrs) $3,500,000 $1,400,000 $350,000 2,000 1,000 Zero 5,000 $950,000 24,000 36,000 2,000 Zero Required: Determine total costs for each department by solving the equations using the reciprocal method. (Engineering= Eng; Computer Sciences CS; Facility and Technical Maintenance = FTM; Enrollment Service = ES)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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University of Tampa offers high-quality undergraduate-level programs. UT has two principal operating departments, College of Business and Sciences, and two support departments, Facility Services and Admissions. The base used to allocate facility services is budgeted total maintenance hours. The base used to allocate admissions costs is number of credit hours for a department. The Facility Services budget is $280,000, while Admissions budget is $450,000. Interdepartmental usage is as follows: Services Provided: (Annually) Facilities Admissions Facilities 0 1,500 COB Sciences 3,500 5,000 (in hours) Admissions 1,000 0 15.000 9,000 (in credit hrs) Use the Reciprocal method to allocate support department costs. What amount of Admissions support costs will be allocated to COB?
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