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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-Base Budgeted Activity Activity Base Activity Cost Usage Square feet Facilities $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 Facilities Instruction Student Services 8,000 square feet 8 sections 150 students Archaeology an Geology 5,200 square feet 15 sections 200 students a. Determine the activity rate for each activity. Activity Rate Activity 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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