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 17,550 students and continuing professional education (CPE) courses to 9,450 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 270,000 square feet of classroom and facility space. Due to the large space requirements for labs and other training facilities, the undergraduate program utilizes 243,000 square feet. Total cost $3,294.000 • 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, $1,080,000. • UDH offers 1,000 different instructional courses each year, 700 of which are undergraduate courses. Total cost, $3,500,000 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 Activity Cost Driver Cost Total Activity Driver Activity Rate Facilities Square Feet $ 3,294,000 Services Number of Students $ 1,080,000 Instruction Number of Courses $ 3,500,000 < Required 1 Required 2 >

Answer 1

Answer

• Requirements

[1]

Activity	Activity Cost driver	Cost	Total Activity Driver	Activity Rate
Facilities	No. of sq ft	$3,294,000	270,000	$                               12.20
Services	No. of students	$1,080,000	27,000	$                               40.00
Instructions	No. of courses	$3,500,000	1,000	$                         3,500.00

[2]

	Activity Cost driver	Cost	Undergraduate	Activity Proportion	CPE	Activity Proportion	Total	Total Proportion
Facilities	No. of sq ft	$3,294,000	243000	90%	27000	10%	270000	100%
Services	No. of students	$1,080,000	17550	65%	9450	35%	27000	100%
Instructions	No. of courses	$3,500,000	700	70%	300	30%	1000	100%

[3]

Activity		Cost	Undergraduate	CPE
Facilities	No. of sq ft	$3,294,000	$2,964,600	$329,400
Services	No. of students	$1,080,000	$702,000	$378,000
Instructions	No. of courses	$3,500,000	$2,450,000	$1,050,000
Total Cost assigned			$6,116,600	$1,757,400
No. of students			17,550	9,450
Cost per students			$                              348.52	$                            185.97