The Business Programs department at SFC has six programs:  Accounting, Exonomics, Health Information Management, Legal Assisting, Organizational Management, and Office Systems Technology. Each program has a different number of students, a different number of faculty, and different techmology requirements. The departments buget must pay for Faculty Salaries, Administrative Salaries, Student Advisors, Equipment, Office Supplies, and other miscellaneous expenses such as travel costs, journal subscriptions, and coffee. Dr. Boulware, Director of Business Programs, must develop a method for allocating the total Business Program funds available next semster to each of the six programs. Some allocations are obvious: Faculty salaries should probably be allocated to the programs in which each og the Faculty members are employed, e.g. economics instructors' salaries should be charged to the economics program. But how should the cost of  administrators be allocated? And what about the advisors? Can their activities be seperately associated with each program? Is the number of students more relevant than the number of faculty memebers? Office Systems Technology is an equipment-intensive program. Should they get allocated a bigger budget for equipment use? How much of the cost of running the Business Computer Lab should each program pay? Should equipment be charged to a program, if the equipment is available to that program, but the instructors dont use it? What about office supplies?

Required: 

Send me a memo suggesting how Dr. Boulware should allocate Business Program costs to each program in the department. Below, the following data maybe useful:

 

The following data may be useful: Item % of Budget 52 Faculty Salaries Administrative Salaries Advisor Salaries 8 6. Equipment Depreciation Office Supplies 4 Travel & Professional Development Computer Lab Total 11 14 100 Programs 6 (see above) 15 Faculty - Full time Faculty - Part time Administrators 12 Advisors Students 700 Eqpt. Depreciation $15,000 Classroom Eqpt Office Eqpt Faculty Eqpt per yr $10,000 $2,000 $3,000