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 Budgeted Activity Cost Activity-Base 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 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 Activity Rate Facilities $fill in the blank 1 per sq. ft. Instruction $fill in the blank 2 per section Student services $fill in the blank 3 per student b. Determine the total activity cost for the Archaeology Department. Total activity cost $fill in the blank 4
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 Budgeted Activity Cost Activity-Base 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 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 Activity Rate Facilities $fill in the blank 1 per sq. ft. Instruction $fill in the blank 2 per section Student services $fill in the blank 3 per student b. Determine the total activity cost for the Archaeology Department. Total activity cost $fill in the blank 4
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 11E: Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in...
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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 for each activity are identified as follows:
Activity |
Activity Base |
Budgeted Activity Cost |
Activity-Base 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 | 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 | Activity Rate | |
| Facilities | $fill in the blank 1 | per sq. ft. |
| Instruction | $fill in the blank 2 | per section |
| Student services | $fill in the blank 3 | per student |
b. Determine the total activity cost for the Archaeology Department.
| Total activity cost | $fill in the blank 4 |
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