Help me in doing just part 4 of the question.

CASE 7-26 Comprehemie Aethity Based Centing L02, Los, frog Kolbec Community College (KCC) has 4.000 full-time students and offers a variety of academic programs in three areas: professional studies, arts, and technology. The professional studies programs prepare students for administrative and clerical jobs in a variety of professional settings, including accounting, medicine, and law. The arts program's offerings are wide ranging and include graphic design, digital animation culinary arts, cosmetologs, and music arts. The technology programs are also varied, including information technology: medical laboratory technology, electrical engineering technology, pharmacy technology, and natural resources technology The chief financial officer of KCC, Lynn Jones, has consistently emphasized to other members of the senior management team the importance of understanding the costs of delivering the various academic programs. To that end, the costing system used at KCC tracks the direct costs of each program, which are shown below on an annual basis along with the number of full-time students Fulltime students Professors' salaries Administrative salaries Supplies Teaching support Facilities Total direct cost Predeal Studies 2.000 $1.200,000 105.000 40.000 160,000 275.000 $1.540.000 1.000 $ 650,000 70,000 150,000 100,000 150.000 S1.120.000 1.000 $ 780,000 70,000 50.000 SO,000 175.000 SL.155.000 4.000 $ 2.000.000 245.000 240,000 340,000 600.000 $ 4.115.000 It is very important to understand the overhead costs consumed by each academic program at KCC in determining the full cost of operating the programs. Central administration at KCC allocates financial resources to academic programs based on the estimated full cost per student of delivering the program. The overhead costs at KCC are significant, totalling over 60% of direct costs. Total annual overhead costs at KCC are as follows Office Activity Central administration Information systems technology Student counselling services Human resources Library operations Registrar's office Total Resource Distribution across Activities Administrative Facilities 205 20% 155 SS 55 TOS 205 60% 105 100% 100% 155 10% 10% 30% 205 1005 Working with key personnel from each of the six activities shown above, Jones and West then identify the activity measure and the quantity of that measure used for each teaching program. Fortunately, KCC implemented an enterprise resource planning system a few years ago, which is already tracking much of the information needed regarding the activity measures and the specific quantities for ench academic program Central administration Information systems technology Student counselling services Human resources Mean Hours spent on program Processing hours Number of students counselled Number of admin.staff and faculty members Profesional 6,000 0,000 180 Arts 7,000 3.000 115 Technology 7.000 12.000 205 Library operations Registrar's office Number of library circulations Full-time students 21 6,000 2.000 15 3000 1.000 14 3.000 1.000 Required 1. Using the traditional approach to assigning overhead costs to academic programs a Calculate the predetermined overhead rate. Assign the overhead costs to each academie program using the predetermined rate. Calculate the total cost per student (direct costs plus overhead) of operating each academic program. 2. Using ABC.complete the following requirements: Using Exhibit 7-7 as a guide, complete the first stage allocation of overhead costs to academie programs Using Exhibit 7-8 as a guide, calculate the activity rates for each of the activity cost pools. c. Using the activity rates Calculated in (b), complete the second stage allocation of overhead to sademic programs. 3. Based on the results of (2). calculate the total cost per student direct costs plus overhead) of operating each academic program. 4. Draft a meno to Jones explaining the key reasons for differences in the total cost per student of operating each academic program that arise between the traditional costing approach and ABC. CASE 7-26 Comprehemie Aethity Based Centing L02, Los, frog Kolbec Community College (KCC) has 4.000 full-time students and offers a variety of academic programs in three areas: professional studies, arts, and technology. The professional studies programs prepare students for administrative and clerical jobs in a variety of professional settings, including accounting, medicine, and law. The arts program's offerings are wide ranging and include graphic design, digital animation culinary arts, cosmetologs, and music arts. The technology programs are also varied, including information technology: medical laboratory technology, electrical engineering technology, pharmacy technology, and natural resources technology The chief financial officer of KCC, Lynn Jones, has consistently emphasized to other members of the senior management team the importance of understanding the costs of delivering the various academic programs. To that end, the costing system used at KCC tracks the direct costs of each program, which are shown below on an annual basis along with the number of full-time students Fulltime students Professors' salaries Administrative salaries Supplies Teaching support Facilities Total direct cost Predeal Studies 2.000 $1.200,000 105.000 40.000 160,000 275.000 $1.540.000 1.000 $ 650,000 70,000 150,000 100,000 150.000 S1.120.000 1.000 $ 780,000 70,000 50.000 SO,000 175.000 SL.155.000 4.000 $ 2.000.000 245.000 240,000 340,000 600.000 $ 4.115.000 It is very important to understand the overhead costs consumed by each academic program at KCC in determining the full cost of operating the programs. Central administration at KCC allocates financial resources to academic programs based on the estimated full cost per student of delivering the program. The overhead costs at KCC are significant, totalling over 60% of direct costs. Total annual overhead costs at KCC are as follows Office Activity Central administration Information systems technology Student counselling services Human resources Library operations Registrar's office Total Resource Distribution across Activities Administrative Facilities 205 20% 155 SS 55 TOS 205 60% 105 100% 100% 155 10% 10% 30% 205 1005 Working with key personnel from each of the six activities shown above, Jones and West then identify the activity measure and the quantity of that measure used for each teaching program. Fortunately, KCC implemented an enterprise resource planning system a few years ago, which is already tracking much of the information needed regarding the activity measures and the specific quantities for ench academic program Central administration Information systems technology Student counselling services Human resources Mean Hours spent on program Processing hours Number of students counselled Number of admin.staff and faculty members Profesional 6,000 0,000 180 Arts 7,000 3.000 115 Technology 7.000 12.000 205 Library operations Registrar's office Number of library circulations Full-time students 21 6,000 2.000 15 3000 1.000 14 3.000 1.000 Required 1. Using the traditional approach to assigning overhead costs to academic programs a Calculate the predetermined overhead rate. Assign the overhead costs to each academie program using the predetermined rate. Calculate the total cost per student (direct costs plus overhead) of operating each academic program. 2. Using ABC.complete the following requirements: Using Exhibit 7-7 as a guide, complete the first stage allocation of overhead costs to academie programs Using Exhibit 7-8 as a guide, calculate the activity rates for each of the activity cost pools. c. Using the activity rates Calculated in (b), complete the second stage allocation of overhead to sademic programs. 3. Based on the results of (2). calculate the total cost per student direct costs plus overhead) of operating each academic program. 4. Draft a meno to Jones explaining the key reasons for differences in the total cost per student of operating each academic program that arise between the traditional costing approach and ABC