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Exercise 12-32 Cost Allocation in a College (LO 12-4) Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Business Administration. The college's comptroller is
Exercise 12-32 Cost Allocation in a College (LO 12-4) 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 yearjust ended. Department Annual Cost Admissions $122,000 Registrar 205,000 Computer Services 436,000 Planned Courses Budgeted Requiring computer Budgeted Credit Division Enrollment Hours Work Liberal Arts 35,050 1,500 14 31,800 Sciences 1,050 29 Business Administration 950 25, 750 29 Required: 1. Distribute the departmental costs to the college's three divisions based on the allocation base given. 2. Choose the better allocation base for distributing the cost to the following departments
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