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. Department Admissions Registrar Computer Services Annual Cost $124,000 209,000 444,000 Planned Courses Requiring Computer Work Budgeted Enrollment 1,700 1,150 1,050 Division Liberal Arts Sciences Business Administration Budgeted Credit Hours 37,000 33,250 27, 250 19 31 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: Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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.) Division Department and Allocation Base Liberal Arts Sciences sci Business Administration Admissions (enrollment) Registrar (credit hours) Computer Services (courses requiring computer) Total Cost Allocated 0 0 0

Answer 1

1	Department ans allocation base	Liberal Arts	Sciences	Business Administration	Total cost allocated
	Admissions (enrollment)	$           54,051	$       36,564	$       33,385	$        1,24,000
	Registrar (credit hours)	$           79,313	$       71,274	$       58,413	$        2,09,000
	Computer services (courses requiring computer)	$       1,04,148	$   1,69,926	$    1,69,926	$        4,44,000
2	Better allocation base:
	Registrar	=	Budgeted credit hours
	Computer services	=	Planned courses requiring Computers
	Workings:
		Liberal Arts	Sciences	Business Administration	Total
(i)	Budgeted enrollments	1700	1150	1050	3900
($124000/3900) X (i)	Admissions	$           54,051	$       36,564	$       33,385	$        1,24,000
(ii)	Budgeted credit hours	37000	33250	27250	97500
($209000/97500) X (ii)	Registrar	$           79,313	$       71,274	$       58,413	$        2,09,000
(iii)	Planned courses requiring Computers	19	31	31	81
($444000/81) X (iii)	Computer services	$       1,04,148	$   1,69,926	$    1,69,926	$        4,44,000