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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: Budgeted Activity-Base Activity Activity Base Activity Cost Usage Facilities Square feet $800,000 80,000 square feet Instruction Number of course sections 1,200,000 600 sections Student services Number of students 290,000 2,500 students The activity-base usage associated with the Archaeology and Geology departments is as follows: Department Archaeology Geology Facilities 8,000 square feet 5,200 square feet Instruction 8 sections 15 sections Student Services 150 students 200 students a. Determine the activity rate for each activity. Activity Activity Rate Facilities per sq. ft. Instruction per section Student services per student b. Determine the total activity cost for the Archaeology Department Total activity cost
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