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Indirect cost allocation. The Autopia Parks Department is revisiting its allocation of administrative overhead between two recreational programs that serve different constituencies in the city.
Indirect cost allocation. The Autopia Parks Department is revisiting its allocation of administrative overhead between two recreational programs that serve different constituencies in the city. Use the program information below to answer questions. The previous Chief Financial Officer CFO allocated administrative costs evenly between two park programs: Senior Social and PreK Playtime. The new CFO has asked you to analyze two basic options for allocating the administrative costs: share of number of service hours in each program or share of all program participants in each program. Senior Social. The Senior Social program provides an array of social activities to seniors, including bingo, square dancing, social bridge and art classes, in all of Autopia's eight neighborhood parks. The program serves about participants altogether, in various activities that typically average about two hours per week in each park. The program operates weeks out of the year. PreK Playtime. The PreK Playtime program operates in five of Autopia's eight neighborhood parks, and engages children aged to and a caretaker or parent in creative play activities during the morning hours. About children and their parent or caretaker participate in the program each year. Classes meet in each park, three times per week for about three hours per day. The PreK Playtime program operates for weeks out of the year, as it is closed during the summer months and winter holidays, when many of the families it serves are away on vacation or have other family obligations. NOTE: As you have not been given admin costs, you are being asked to calculate the allocation factors as percentages of expense that add to percent: Question: Calculate cost allocation factors for each program, based on total programming hours during the year note because you do not have costs, these will be percentages Calculate cost allocation factors based on number of participants served each year note for PreK Playtime, base this on the n umber of child participants; again, express as percentages The CFO read something about Activity Based Cost allocation and thinks that it might make sense to determine how much time the park administrator and two program assistants spend on these programs. In a few sentences, describe activity based cost allocation, how it might work in this context, and its possible advantages and disadvantages.
Indirect cost allocation. The Autopia Parks Department is revisiting its allocation of administrative overhead between two recreational programs that serve different constituencies in the city. Use the program information below to answer questions.
The previous Chief Financial Officer CFO allocated administrative costs evenly between two park programs: Senior Social and PreK Playtime. The new CFO has asked you to analyze two basic options for allocating the administrative costs: share of number of service hours in each program or share of all program participants in each program. Senior Social. The Senior Social program provides an array of social activities to seniors, including bingo, square dancing, social bridge and art classes, in all of Autopia's eight neighborhood parks. The program serves about participants altogether, in various activities that typically average about two hours per week in each park. The program operates weeks out of the year.
PreK Playtime. The PreK Playtime program operates in five of Autopia's eight neighborhood parks, and engages children aged to and a caretaker or parent in creative play activities during the morning hours. About children and their parent or caretaker participate in the program each year. Classes meet in each park, three times per week for about three hours per day. The PreK Playtime program operates for weeks out of the year, as it is closed during the summer months and winter holidays, when many of the families it serves are away on vacation or have other family obligations.
NOTE: As you have not been given admin costs, you are being asked to calculate the allocation factors as percentages of expense that add to percent:
Question: Calculate cost allocation factors for each program, based on total programming hours during the year note because you do not have costs, these will be percentages Calculate cost allocation factors based on number of participants served each year note for PreK Playtime, base this on the n umber of child participants; again, express as percentages The CFO read something about Activity Based Cost allocation and thinks that it might make sense to determine how much time the park administrator and two program assistants spend on these programs. In a few sentences, describe activity based cost allocation, how it might work in this context, and its possible advantages and disadvantages.
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