17. (Physical and sales value allocations) Scott Community College runs two noncredit evening programs. During 2000, the following operating data were generated:

Small Business Management Introduction to Internet Class hours taught 4,000 2,000 Hourly tuition $5 $15 The general ledger accounts show $37,000 for direct instructional costs and

$5,000 for overhead associated with these two programs. The Board of Trustees wants to know the cost of each program.

a. Determine the cost of each program using a physical measurement base.

b. Determine the cost of each program using the sales value at split-off method.

c. Make a case for each allocation method from parts

(a) and (b).