Ignatius College has provided the following data to be used in its service department cost allocations:Departmental costs before allocations
*Service Dept
- Administration: $2,070,000
- Physical Plant Services: $720,000
*Operating Dept
- Undergrad programs: $23,650,000 Student Credit Hrs: 40,000
- Graduate programs:$2,980,000 Student Credit Hrs: 5,000
- Space Occupied in square feet
*Service Dept
- Administration: 30,000
- Physical Plan: 5,000
*Operating Dept
- Undergrad programs: 250,000
- Graduate programs: 50,000
Using the direct method allocate the costs of the service departments to the two operating departments.Allocate the costs of the Administration Dept on the basis of student credit-hours and the costs of the Physical Plant Service Dept on the basis of space occupied.