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Troglodyte University uses activity-based costing to assign indirect costs to academic departments, using three activities. The activity base, budgeted activity cost, and estimated activity-base usage
Troglodyte University uses activity-based costing to assign indirect costs to academic departments, using three activities. The activity base, budgeted activity cost, and estimated activity-base usage for each activity are identified as follows: Activity Activity Base Facilities Square feet Instruction Number of course sections Student services Number of students Budgeted Activity-Base Activity Cost Usage $800,000 80,000 square feet 1,200,000 600 sections 290,000 2,500 students The activity-base usage associated with the Archaeology and Geology departments is as follows: Department Facilities Instruction Student Services Archaeology 8,000 square feet 8 sections 150 students Geology 5,200 square feet 15 sections 200 students a. Determine the activity rate for each activity. Activity Facilities Instruction Student services Activity Rate per sq. ft. per section. per student b. Determine the total activity cost for the Archaeology Department. Total activity cost
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