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How to calculate using step allocation
Uec offers only technical graduate-level programs. UEC 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 service is number of credit hours for 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.
Budget Engineering computer Sciences F&T Enroll Maintenance F&T Maintenance 350,000 1,000 2,000 0 5,000 (in hours) Enrollment 950,000 24,000 36,000 2,000 0 Service (in credit hour) Required: Prepare a schedule, which allocates service department cost using step-down method with sequence of allocation based on the highest-percentage support concept. Compute the total amount of support cost allocated to each of the two principal operating departments, Engineering and Computer Sciences. |
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