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 COB Sciences Facilities 0 1,500 3,500 5,000 (in hours) Admissions 1,000 0 15,000 9,000 (in credit hrs) (a) Use the Direct Method to allocate support department costs. The amount of Facilities support costs allocated to COB is _________ and the amount of Facilities costs allocated to Sciences is ________. (b) Use the Direct Method to allocate support department costs. The amount of Admissions support costs allocated to COB is _______ and the amount of Admissions costs allocated to Sciences is _________. (c) Use the Step-Down Method to allocate support department costs, allocating Facilities costs first. The total amount of support costs (Facilities and Admissions) allocated to COB is _________ and the total amount of support costs allocated to Sciences is _____________.
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 COB Sciences
Facilities 0 1,500 3,500 5,000
(in hours)
Admissions 1,000 0 15,000 9,000
(in credit hrs)
(a) Use the Direct Method to allocate support department costs. The amount of Facilities support costs allocated to COB is _________ and the amount of Facilities costs allocated to Sciences is ________.
(b) Use the Direct Method to allocate support department costs. The amount of Admissions support costs allocated to COB is _______ and the amount of Admissions costs allocated to Sciences is _________.
(c) Use the Step-Down Method to allocate support department costs, allocating Facilities costs first. The total amount of support costs (Facilities and Admissions) allocated to COB is _________ and the total amount of support costs allocated to Sciences is _____________.
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