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 programs offerings are wide ranging and include graphic design, digital animation, culinary arts, cosmetology, 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 fulltime

students:

Item	Studies	Arts	Technology	Total
Full-Time Students	2,000	1,000	1,000	4,000
Professor's salaries	$ 1,290,000	$ 662,000	$ 792,000	$ 2,744,000
Administrative salaries	111,000	73,000	73,000	257,000
Supplies	46,000	156,000	53,000	255,000
Teaching support	166,000	103,000	86,000	355,000
Facilities	287,000	156,000	181,000	624,000
Total direct cost	$ 1,900,000	$ 1,150,000	$ 1,185,000	$ 4,235,000

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:

	Cost
Adminisstrative salaries	$ 930,000
Facility costs	1,340,000
Office expenses	310,000
Total overhead costs	$ 2,580,000

Req. 1:	Using the trditional approach to assigning overhead costs to academic programs:
1.a.	Predetermined overhead rate:
	Total overhead costs			per student
	Full-time students
1.b	Overhead costs assigned to academic programs:
	Professional studies:	OH rate x # of stu.
	Arts:
	Technology:
1.c	Total cost per student:
		Professional Studies	Arts	Technology	Total
	Professors salaries				$ -
	Administrative salaries				-
	Supplies				-
	Teaching support				-
	Facilities				-
	Overhead				-
	Total costs	$ -	$ -	$ -	$ -
	Full-time students
	Cost per student