Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Business Administration. The college's comptroller is trying to decide how to allocate the costs of the Admissions Department, the Registrar's Department, and the Computer Services Department. The comptroller has compiled the following data for the year just ended. Department Admissions Registrar Computer Services. Division Liberal Arts Sciences Business Administration Annual Cost $134,000 229,000 484,000 Required 1 Required 2 Budgeted Enrollment 2,700 1,650 1,550 Budgeted Credit Hours 47,000 40,750 34,750 Registrar Computer Services Planned Courses Requiring Computer Work Required: 1. Distribute the departmental costs to the college's three divisions based on the allocation base given. 2. Choose the better allocation base for distributing the cost to the following departments: 29 41 41 Complete this question by entering your answers in the tabs below. Choose the better allocation base for distributing the cost to the following departments:
Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Business Administration. The college's comptroller is trying to decide how to allocate the costs of the Admissions Department, the Registrar's Department, and the Computer Services Department. The comptroller has compiled the following data for the year just ended. Department Admissions Registrar Computer Services. Division Liberal Arts Sciences Business Administration Annual Cost $134,000 229,000 484,000 Required 1 Required 2 Budgeted Enrollment 2,700 1,650 1,550 Budgeted Credit Hours 47,000 40,750 34,750 Registrar Computer Services Planned Courses Requiring Computer Work Required: 1. Distribute the departmental costs to the college's three divisions based on the allocation base given. 2. Choose the better allocation base for distributing the cost to the following departments: 29 41 41 Complete this question by entering your answers in the tabs below. Choose the better allocation base for distributing the cost to the following departments:
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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