SE 7-24Comprehensive Activity-Based Costing LO2. LO3.d__ bec Community College (KCC) has 4.000 full-time students and offers a variety of academic grams in three areas: professional studies, arts, and technology. The professional studies rams prepare students for administrative and clerical jobs in a variety of professional gs, including accounting, medicine, and law. The arts program's offerings are wide ranging and include graphic design, digital animation. culinary arts, cosmetology, and musica technology programs are also varied, including information technology, medical laboratory technology, electrical engineering technology. pharmacy technology, and natural resour technology ces The chief financial officer of KCC. Lynn Jones, has consistently emphasized to other mem- ers 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: Professional StudiesArts Technology Total Item Fulltime students. Professors' salaries Administrative salaries.. Supplies 2000 1000 1,000 4000 $1260000 650,000 $780000 $2690000 70000 150,000 100,000 150,000 70,000 50,000 80,000 175,000 245,000 240,000 340,000 600000 4115,000 105000 40,000 160,000 275,000 Teaching support $1840000 120000 $1155000 4 It is very important to understand the overhead costs consumed by each academic progra KCC in determining the full cost of operating the programs. Central administration at allocates financial resources to academic programs based on the estimated full cos student of delivering the program. The overhead costs at KCC are significant, totalling 60% of direct costs. Total annual overhead costs at KCC are as follows SE 7-24Comprehensive Activity-Based Costing LO2. LO3.d__ bec Community College (KCC) has 4.000 full-time students and offers a variety of academic grams in three areas: professional studies, arts, and technology. The professional studies rams prepare students for administrative and clerical jobs in a variety of professional gs, including accounting, medicine, and law. The arts program's offerings are wide ranging and include graphic design, digital animation. culinary arts, cosmetology, and musica technology programs are also varied, including information technology, medical laboratory technology, electrical engineering technology. pharmacy technology, and natural resour technology ces The chief financial officer of KCC. Lynn Jones, has consistently emphasized to other mem- ers 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: Professional StudiesArts Technology Total Item Fulltime students. Professors' salaries Administrative salaries.. Supplies 2000 1000 1,000 4000 $1260000 650,000 $780000 $2690000 70000 150,000 100,000 150,000 70,000 50,000 80,000 175,000 245,000 240,000 340,000 600000 4115,000 105000 40,000 160,000 275,000 Teaching support $1840000 120000 $1155000 4 It is very important to understand the overhead costs consumed by each academic progra KCC in determining the full cost of operating the programs. Central administration at allocates financial resources to academic programs based on the estimated full cos student of delivering the program. The overhead costs at KCC are significant, totalling 60% of direct costs. Total annual overhead costs at KCC are as follows