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29) Troglodyte University uses activity-based costing to assign indirect costs to academic departments, using three activities. The activity base, budgeted activity cost, and estimated activity-base
29)
Troglodyte University uses activity-based costing to assign indirect costs to academic departments, using three activities. The activity base, budgeted activity cost, and estimated activity-base usage for each activity are identified as follows:
Activity | Activity Base | Budgeted Activity Cost | Activity-Base Usage | |
Facilities | Square feet | $800,000 | 80,000 | square feet |
Instruction | Number of course sections | 1,200,000 | 600 | sections |
Student services | Number of students | 290,000 | 2,500 | students |
The activity-base usage associated with the Archaeology and Geology departments is as follows:
Department | Facilities | Instruction | Student Services | |||
Archaeology | 8,000 | square feet | 8 | sections | 150 | students |
Geology | 5,200 | square feet | 15 | sections | 200 | students |
a. Determine the activity rate for each activity.
Activity | Activity Rate | |
Facilities | $ | per sq. ft. |
Instruction | $ | per section |
Student services | $ | per student |
b. Determine the total activity cost for the Archaeology Department.
Total activity cost | $ |
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