Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Business Administration. The colleges comptroller is trying to decide how to allocate the costs of the Admissions Department, the Registrars Department, and the Computer Services Department. The comptroller has compiled the following data for the year just ended.

Department Annual Cost

Admissions $ 134,000

Registrar 229,000

Computer Services 484,000

Division Budgeted Enrollment Budgeted Credit Hours Planned Courses Requiring Computer Work

Liberal Arts 2,700 47,000 29

Sciences 1,650 40,750 41

Business Administration 1,550 34,750 41

Required:

1. Distribute the departmental costs to the colleges three divisions based on the allocation base given.

2. Choose the better allocation base for distributing the cost to the following departments: