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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 credi hours for a department. The Facility and Technology Maintencance budget $350,000, while the Enrollment Services budget is $950,000. The following chart summarizes the budgeted amounts and allocation-base amounts used by each department:
Budget Engineering Computer Sciences F&T Maintenance Enrollment Service
F&T Maintenance hours $350,000 2,000 5,000 zero 1,000
Enrollment Service hours $950,000 24,000 36,000 2,000 zero
Use the direct method, step down method and reciprocal method to allocate support costs to each of the two principal operating departments, Engineering and Computer Sciences. Prepare a schedule showing the support costs allocated to each department.
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