Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Bu

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:

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 468,000

Explanation / Answer

Requirement 1 Given data Division Budgeted Enrollment Budgeted Credit Hours Planned Coursed Requiring computer work Liberal Arts 2300 43000 25.00 Sciences 1450 37750 37.00 Business Administration 1350 31750 37.00      Totals 5100 112500 99.00 Summary table of Department Expenses assigned to Divisions Departments Allocation Basis Liberal Arts Sciences Business Administration    Total Admissions Enrollment                         58,627                       36,961                        34,412 1,30,000 130000/5100X2300 130000/5100X1450 130000/5100X1350 Registrar Credit Hours                         84,471                       74,158                        62,371 2,21,000 221000/112500X43000 221000/112500X37750 221000/112500X31750 Computer services Courses requiring computer                      1,18,182                     1,74,909                     1,74,909 4,68,000    468000/99X25 468000/99X37 468000/99X37   Totals                      2,61,280                     2,86,028                     2,71,692 8,19,000 Requirement 2 Better Allocation base to following Departments Registrar Credit Hours Computer services Courses requiring computer

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