Burgess Business School has two degree programs, BBA and MBA. The school uses an ABC system to cost the three support services it provides to students from both programs: Career Center, Events, and Library. Following are the costs of these three activities and the cost drivers used in the system: Activity Career Center Event planning and hosting Library For the most recent year, data collected from the central IT systems indicate the following: Interview-hours Activity Cost BBA 10,400 5,500 70,700 $ 448,000 440,000 606,000 Cost Driver Interview-hours. Event attendance Number of visits MBA 5,600 4,500 30,300 Event attendance. Library visits Required: a. Compute the cost-driver rates for the three activities at the school. b. Suppose that in a future period, no students from the MBA program visited the Library. What amount of the Library cost would be assigned to the MBA program?

Burgess Business School has two degree programs, BBA and MBA. The school uses an ABC system to cost the three support services it provides to students from both programs: Career Center, Events, and Library. Following are the costs of these three activities and the cost drivers used in the system: Activity Career Center Event planning and hosting Library For the most recent year, data collected from the central IT systems indicate the following: Interview-hours Activity Cost BBA 10,400 5,500 70,700 $ 448,000 440,000 606,000 Cost Driver Interview-hours. Event attendance Number of visits MBA 5,600 4,500 30,300 Event attendance. Library visits Required: a. Compute the cost-driver rates for the three activities at the school. b. Suppose that in a future period, no students from the MBA program visited the Library. What amount of the Library cost would be assigned to the MBA program?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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