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	Annual Cost
Admissions	$	125,000
Registrar		211,000
Computer Services		448,000

  

Division	Budgeted Enrollment			Budgeted Credit Hours			Planned Courses Requiring Computer Work
Liberal Arts		1,800			38,000			20
Sciences		1,200			34,000			33
Business Administration		1,100			28,000			32

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:

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 Business Administration Total Cost Allocated Admissions (enrollment) Registrar (credit hours) Computer Services (courses requiring computer)

Answer 1

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 Business Administration Total Cost Allocated Admissions (enrollment) 54878 36585 33537 125000 Registrar (credit hours) 80180 71740 59080 211000 Computer Services (courses requiring computer) 105412 173929 168659 448000