Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mapleview Academy, a private school, serves 500 students: 200 in middle school (Grades 6 to 8), and 300 in the high school (Grades 9 to

image text in transcribed
image text in transcribed
Mapleview Academy, a private school, serves 500 students: 200 in middle school (Grades 6 to 8), and 300 in the high school (Grades 9 to 12). Each school group has its own assistant principal, and there is one principal, Wanda Rossato, for the academy. For any single student, almost all Maple view's costs are indirect Mapleview currently has five indirect cost categories, which are listed in Table A. Rossato wants to develop an ABC system for the school. She identifies four activities that represent the "scope" of the Mapleview's activities: academic instruction administration sports training community relationships Rossato and her team identify the number of students as the cost driver of academic instruction and administrative costs, and the number of team sports offered by the school as the driver of sports training costs. The cost of maintaining community relationships, which is primarily dealing with town council and participating in local activities, is considered a "facility-sustaining" (cost of doing business) cost that the school must incur every year. Table A shows the percentage of costs in each line item used by each activity. TABLEA Percentage of Costs Used by Each Activity Academic Sports Community 2020 Indirect Cost Instruction Administration Training Relationships Expenditures Teachers' salaries & 60% 20% 8% 12% $4,000,000 benefits Principals salaries & 10% 60% 5% 25% $400,000 benefits Facilities 35% 15% 45% $2,600,000 Office staff salaries & 5% 60% 10% 25% $300,000 benefits Sports program staff 35% 10% 45% 10% $500,000 salaries & benefits 5% a) What is the overall cost of educating each student? Of this cost, what percentage is the cost of: 1. Academic instruction ii. Administration b) Rossato is dismayed at the high cost of sports training. Further examination reveals that $300,000 of those costs are for ice hockey, a sport pursued by 40 students. What would the overall cost of educating each student if the ice hockey program was eliminated and its associated cost saved? c) For the 2021 school year, Mapleview charges an annual fee of $1,000 for any student who want to play ice hockey. As a result, 10 of the less- motivated students drop the sport. Assuming the costs of the school in 2021 are the same as 2020, what is the overall cost of education for each student in 2021? d) While current enrollment is 500 students, the school's capacity is 600 students. Consider the cost of the academic instruction activity as fixed costs in the short run and at these costs Mapleview could ramp up to 600 students. What are some actions Rossato could take both in the short- term and long-term to reduce the cost of academic instruction per student

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting A Systems Approach

Authors: Alison Warman, Jeff Davies

1st Edition

1861520379, 978-1861520371

More Books

Students also viewed these Accounting questions

Question

Why are employees considering union representation?

Answered: 1 week ago

Question

What is the total annual turnover rate?

Answered: 1 week ago