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 Determine the activity rate for each activity. Activity Activity Rate Facilities per sq. ft. Instruction per section Student services per student Determine the total activity cost for the Archaeology Department. Total activity cost
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 |
|
|
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 |
- Determine the activity rate for each activity.
|
Activity |
Activity Rate |
|
|
Facilities |
per sq. ft. |
|
|
Instruction |
per section |
|
|
Student services |
per student |
- Determine the total activity cost for the Archaeology Department.
|
Total activity cost |
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