Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Bu
ID: 2512953 • Letter: L
Question
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.
Required:
Distribute the departmental costs to the college’s three divisions based on the allocation base given.
Choose the better allocation base for distributing the cost to the following departments:
Distribute the departmental costs to the college’s three divisions based on the allocation base given. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)
Choose the better allocation base for distributing the cost to the following departments:
Department Annual Cost Admissions $ 130,000 Registrar 221,000 Computer Services 468,000Explanation / Answer
Answer
Department and Allocation Base
Liberal Arts
Sciences
Business Administration
Total Cost Allocated
Admissions (enrollment): Budgeted enrollment ratio
2300
1450
1350
5100
Cost allocated
$58627.45098 [130000 x 2300/5100]
$36960.78431
$34411.76471
$130000
Registrar (credit hours): Credit hours ratio
43000
37750
31750
112500
Cost allocated
$84471.11111
$74157.77778
$62371.11111
$221000
Computer Services (courses requiring computer): Planned courses ratio
25
37
37
99
Cost allocated
$118181.8182
$174909.0909
$174909.0909
$468000
Total cost allocated
$261280.3803
$286027.653
$271691.9667
$819000
Department and Allocation Base
Liberal Arts
Sciences
Business Administration
Total Cost Allocated
Admissions (enrollment): Budgeted enrollment ratio
2300
1450
1350
5100
Cost allocated
$58627.45098 [130000 x 2300/5100]
$36960.78431
$34411.76471
$130000
Registrar (credit hours): Credit hours ratio
43000
37750
31750
112500
Cost allocated
$84471.11111
$74157.77778
$62371.11111
$221000
Computer Services (courses requiring computer): Planned courses ratio
25
37
37
99
Cost allocated
$118181.8182
$174909.0909
$174909.0909
$468000
Total cost allocated
$261280.3803
$286027.653
$271691.9667
$819000
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