6A:130 – Fall 2007
****** Must show work to receive credit.
NO WORK NO CREDIT
The University of Iowa College of Law has two degree granting programs: Juris
Doctorate, and Master of Laws. It also has two internal support departments: Library
Services and Information Technology
Library Services costs are allocated using Librarian hours used. Information Technology
cost are allocated based on the number of searches using West Law.
Using the direct allocation method
to allocate the two internal support department
What is the cost for the Juris Doctor program and Master of Laws program
after the allocation is complete?
Departmental cost allocated to JD
Direct Cost: $2,000,000
From Library Services (5,000/6,000) * $250,000 = $208,333