6 Community Technical College Desires To Use Activity Based Costing To Allocate Its 2839572

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)

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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 =

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