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6. Community Technical College desires to use Activity Based Costing to allocate its administrative costs and maintenance and utilities expenses to its four teaching departments.
Administrative costs for the college were $250,000 (allocated based on number of students enrolled)
Maintenance and utilities expenses were $195,000 (allocated based on square feet of classrooms)
Teaching
Size of
Department
Students
Classroom
Electronics
1 17
900 sq. ft.
Automotive
156
750 sq. ft.
Computers
429
1,200 sq. ft.
Plumbing
78
150 sq. ft.
Total .
780
3000 sq. ft
Based on the information below, what is the total amount of expenses allocated to each department (rounded to the nearest dollar) if using Activity Based Costing? (20 points)
Hint: Allocate the two cost pools (administrative costs and maintenance/utilities expenses) to the four departments using the nvo cost drivers. You will need to calculate a predetermined overhead rate for each department.
Expenses allocated to Electronics
Administrative costs =
Maintenance and utilities costs =
Expenses allocated to Automotive
Administrative costs =
Maintenance and utilities costs =
Expenses allocated to Computers
Administrative costs =
Maintenance and utilities costs =
Expenses allocated to Plumbing
Administrative costs =
Maintenance and utilities costs =
Attachments:
Homework.pdf