Question

The University of Dental Health (UDH) is a state-run university focusing on the education and training of dentists, dental assistants, dental hygienists, and other dental professionals. The university provides both traditional undergraduate courses to 19,500 students and continuing professional education (CPE) courses to 10,500 practicing professionals. UDH has just hired a new controller who wants to utilize ABC. The controller has identified three key activities performed by the university and the cost of each of these activities: • UDH has 3 buildings with a total of 300,000 square feet of classroom and facility space. Due to the large space requirements for labs and other training facilities, the undergraduate program utilizes 270,000 square feet. Total cost, $3,750,000. UDH offers career placement services for undergraduate students, career counseling for active professionals taking CPE courses, and other student services to both groups. Total cost, $1,290,000. • UDH offers 1,300 different instructional courses each year, 910 of which are undergraduate courses. Total cost, $4,940,000. Required: 1. Compute an activity rate for each of the three activities identified by the controller. 2. Compute cost driver values and activity proportions for each group of students for each activity. 3. Determine the amount of costs assigned to each group of students and the cost per student to UDH to provide these three key activities. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute an activity rate for each of the three activities identified by the controller. (Round activity Rates to 2 decimal places.) Activity Total Activity Driver Activity Rate Facilities Activity Cost Driver Square Feet Number of Students Cost 3,750,000 1,290,000 4,940,000 $ $ $ Services Instruction Number of Courses

Answer 1

Answers

[1]

Activity	Activity Cost driver	Cost	Total Activity Driver	Activity Rate
Facilities	No. of sq ft	$3,750,000	300,000	$                               12.50
Services	No. of students	$1,290,000	30,000	$                               43.00
Instructions	No. of courses	$4,940,000	1,300	$                         3,800.00

[2]

	Activity Cost driver	Cost	Undergraduate	Activity Proportion	CPE	Activity Proportion	Total	Total Proportion
Facilities	No. of sq ft	$3,750,000	270000	90%	30000	10%	300000	100%
Services	No. of students	$1,290,000	19500	65%	10500	35%	30000	100%
Instructions	No. of courses	$4,940,000	910	70%	390	30%	1300	100%

[3]

Activity		Cost	Undergraduate	CPE
Facilities	No. of sq ft	$3,750,000	$3,375,000	$375,000
Services	No. of students	$1,290,000	$838,500	$451,500
Instructions	No. of courses	$4,940,000	$3,458,000	$1,482,000
Total Cost assigned			$7,671,500	$2,308,500
No. of students			19,500	10,500
Cost per students			$                              393.41	$                            219.86