Stage 1 ABC at a College: Assigning Costs to Activities

An accountingprofessor atMiddleton University devotes60 percent of her time to teaching, 30 percent of her time to research and writing, and 10 percent of her time to service activities such as committee work and student advising. The professor teaches two semesters per year. During each semester, she teaches one section of an introductoryfinancialaccounting course (with a maximum enrollment of 40 students) and one section of a graduatefinancial accounting course (with a maximum enrollment of25 students). Including course preparation, classroom instruction, and appointments with students, each course requires an equal amount of time. Theaccounting professor is paid $96,000 per year.

Determine the activity cost of instruction per student in both the introductory and the graduatefinancial accounting courses.

Round answers to two decimal places.

Cost of Instruction___

Per StudentIntroductory Course

Graduate Course___