Question

Return to question 4 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 7,200 students and continuing professional education (CPE) courses to 4,800 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: 0.5 points • UDH has 3 buildings with a total of 120,000 square feet of classroom and facility space. Due to the large space requirements for labs and other training facilities, the undergraduate program utilizes 102,000 square feet. Total cost, $1,284,000. • 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, $300,000. • UDH offers 1.600 different instructional courses each year, 1.040 of which are undergraduate courses. Total cost, $3,200,000. 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. Answer is not complete. 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 Activity Cost Driver Cost Facilities Services Instruction Square Feet Number of Students Number of Courses $ 1,284.000 $ 300,000 $ 3,200,000 Total Activity Driver Activity Rate 120,000S 10.70 7.200 Ⓡ S 41.70 1,040 X S 3,077.00 X

Answer 1

Answers

• Requirements asked

[1]

Activity	Activity Cost driver	Cost	Total Activity Driver	Activity Rate
Facilities	No. of sq ft	$1,284,000	120,000	$                               10.70
Services	No. of students	$300,000	12,000	$                               25.00
Instructions	No. of courses	$3,200,000	1,600	$                         2,000.00

[2]

	Activity Cost driver	Cost	Undergraduate	Activity Proportion	CPE	Activity Proportion	Total	Total Proportion
Facilities	No. of sq ft	$1,284,000	102000	85%	18000	15%	120000	100%
Services	No. of students	$300,000	7200	60%	4800	40%	12000	100%
Instructions	No. of courses	$3,200,000	1040	65%	560	35%	1600	100%

[3]

Activity		Cost	Undergraduate	CPE
Facilities	No. of sq ft	$1,284,000	$1,091,400	$192,600
Services	No. of students	$300,000	$180,000	$120,000
Instructions	No. of courses	$3,200,000	$2,080,000	$1,120,000
Total Cost assigned			$3,351,400	$1,432,600
No. of students			7,200	4,800
Cost per students			$                              465.47	$                            298.46