Question

Α. D ΕΕ ADC UTUP AS Tent Kolbec Community College (KCC) has 4,000 full-time students and offers a variety of academic programs in three areas: professional studies, arts, and technology. The professional studies programs prepare students for administrative and clerical jobs in a variety of professional settings, including accounting, medicine, and law. The arts program's offerings are wide ranging and include graphic design, digital animation, culinary arts, cosmetology, and music arts. The technology programs are also varied, including information technology, medical laboratory technology, electrical engineering technology, pharmacy technology, and natural resources technology. The chief financial officer of KCC, Lynn Jones, has consistently emphasized to other members of the senior management team the importance of understanding the costs of delivering the various academic programs. To that end, the costing system used at KCC tracks the direct costs of each program, which are shown below on an annual basis, along with the number of fulltime students: Item Full-Time Students Professional Studies 2,000 Arts 1,000 Technology 1,000 Total 4,000 $ Professor's salaries Administrative salaries Supplies Teaching support Facilities Total direct cost 1,270,000 $ 107,000 42,000 162,000 279,000 1,860,000 $ 654,000 71,000 152,000 101,000 152,000 1,130,000 $ 784,000 $ 71,000 51,000 82,000 177,000 $ 1,165,000 $ 2,708,000 249,000 245,000 345,000 608,000 4,155,000 $ ABC Question Req. 1 Req. 2 Req. 3 +

please help me with part 2 question

Answer 1

Answer:

Part 2 of Question:

a) First stage allocation

	Resource distribution across Activities
Activity	Administrative		Facilities		Office		Total
Total Cost	$                                            910,000		$                                         1,310,000		$                                            300,000		$        2,520,000
Central administration	20%	$          182,000	5%	$              65,500	20%	$              60,000	$           307,500
Information system technology	20%	$          182,000	15%	$ 196,500	20%	$              60,000	$           438,500
Student counselling services	5%	$ 45,500	5%	$              65,500	5%	$              15,000	$           126,000
Human resources	10%	$ 91,000	5%	$              65,500	5%	$              15,000	$           171,500
Library operations	20%	$          182,000	65%	$ 851,500	35%	$ 105,000	$        1,138,500
Registrar's office	25%	$          227,500	5%	$              65,500	15%	$              45,000	$           338,000
Total	100%	$          910,000	100%	$        1,310,000	100%	$           300,000	$        2,520,000

b) Activity rates for each of the activity cost pools:

Activity	Measure	Professional studies	Arts	Technology	Total No. of Activities	Total cost of activity	Activity Rate	Per unit
Central administration	Hours spent on program	7,500	8,750	8,750	25,000	$          307,500	12.30	Hours
Information system technology	Processing hours	5,800	2,700	11,500	20,000	$          438,500	21.93	Hours
Student counselling services	Number of students counselled	180	115	205	500	$          126,000	252.00	Student
Human resources	Number of admin staff & faculty members	21	15	14	50	$          171,500	3430.00	Member
Library operations	Number of library circulations	5,500	2,750	2,750	11,000	$       1,138,500	103.50	circulation
Registrar's office	Full time students	2,000	1,000	1,000	4,000	$          338,000	84.50	Student

c) Second stage of allocation of overhead to academic programs:

(No. of activities * Activity Rate)

Activity	Measure	Professional studies	Arts	Technology	Total
Central administration	Hours spent on program	$       92,250.00	$ 107,625.00	$ 107,625.00	$ 307,500.00
Information system technology	Processing hours	$ 127,165.00	$     59,197.50	$ 252,137.50	$ 438,500.00
Student counselling services	Number of students counselled	$       45,360.00	$     28,980.00	$     51,660.00	$ 126,000.00
Human resources	Number of admin staff & faculty members	$       72,030.00	$     51,450.00	$     48,020.00	$ 171,500.00
Library operations	Number of library circulations	$ 569,250.00	$ 284,625.00	$ 284,625.00	$ 1,138,500.00
Registrar's office	Full time students	$ 169,000.00	$     84,500.00	$     84,500.00	$ 338,000.00
Total Overhead cost		$ 1,075,055.00	$ 616,377.50	$ 828,567.50	$ 2,520,000.00

Thank you.