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 17,400 students and continuing professional education (CPE) courses to 11,600 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 290,000 square feet of classroom and facility space. Due to the large space requirements for labs and other training facilities, the undergraduate program utilizes 246,500 square feet. Total cost, $3,596,000.
• 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, $1,218,000.
• UDH offers 1,300 different instructional courses each year, 845 of which are undergraduate courses. Total cost, $4,810,000.

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.

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 Facilities Activity Cost Driver Square Feet Number of Students Number of Courses $ $ $ Total Activity Driver 290,000 29,000 1,300 3,596,000 1,218,000 4.810,000 Services Activity Rate $ 12.40 $ 42.00 $ 3.700.00 Instruction Required 1 Required 2 Required 3 Compute cost driver values and activity proportions for each group of students for each activity. Activity Total Activity Activity Cost Driver Activity Proportion Total Proportion Facilities Square Feet Number of Students Number of Courses Cost 3,595,000 1.218,000 4,810,000 $ $ $ Undergraduate 246,500 17.400 845 CPE 3,349,500 1.200,000 | 4,809,155 Activity Proportion 93% 99% 999 Services T otal 3,596,000 1.218,000 4.310,000 93% 99% 99% Instruction Required 1 Required 2 Required 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. (Do not round your activity rates or activity proportions.) Activity Undergraduate СРЕ Facilities Services Activity Cost Driver Square Feet Number of Students Number of Courses $ $ $ Cost 3,596,000 1,218,000 4.810,000 Instruction Total Cost Assigned Number of Students Cost per Student

Answer 1

1) Activity proportion

Activity	Activity cost driver	Cost	Under graduate	Activity proportion	CPE	Activity proportion	Total	Total proportion
Facilities	Square feet	3596000	246500	85%	43500	15%	290000	100%
services	No of students	1218000	17400	60%	11600	40%	29000	100%
Instructions	No of courses	4810000	845	65%	455	35%	1300	100%

c) Calculate following

Activity	Activity cost driver	Cost	Undergraduate	CPE
Facilities	Square feet	3596000	3056600	539400
Services	No of students	1218000	730800	487200
Instruction	No of courses	4810000	3126500	1683500
Total cost assigned			6913900	2710100
Number of students			17400	11600
Cost per student			397	234