Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Business Administration.

The college’s comptroller is trying to decide how to allocate the costs of the Admissions Department, the Registrar’s Department, and the Computer Services Department. The comptroller has compiled the following data for the year just ended

Required:
1. For each department, choose an allocation base and distribute the departmental costs to the college’s three divisions. Justify your choice of an allocation base.
2. Would you have preferred a different allocation base than those available using the data compiled by the comptroller? Why?
3. Build a spreadsheet: Construct an Excel spreadsheet to solve requirement (1) above. Show how the solution will change if the following information changes: the costs incurred by the departments were $120,000, $160,000, and $360,000, for Admissions, Registrar, and Computer Services, respectively.

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Department Admissions Registrar Computer Services + Division Budgeted Enrollment Budgeted Credit Hours Liberal Arts 1,000 30,000 Sciences 800 28,000 Business Administration 700 22,000 Annual Cost $ 90,000 150,000 320,000 Planned Courses Requiring Computer Work 12 24 24 222