(Not-for-profit program and support cost allocation) Kansas City Jazz Com¬ pany is preparing a pamphlet that will provide information on the types of jazz, jazz terminology, and biographies of some of the more well-known jazz musicians. In addition, the pamphlet will include a request for funding to support the jazz company. The company has tax-exempt status and oper¬ ates on a not-for-profit basis.

The 10-page pamphlet cost $180,000 to design and print. Only 200,000 copies of the pamphlet were printed because the director of the company will soon be leaving and the pamphlet will need to be redesigned. One page of the pamphlet is devoted to fund solicitation; however, 98 percent of the design time was spent on developing and writing the jazz information.

a. If space is used as the allocation measure, how much of the pamphlet’s cost should be assigned to program activities? To fund-raising activities?

b. II design time is used as the allocation measure, how much of the pam¬ phlet’s cost should be assigned to program activities? To fund-raising activities?

 LO1.