dental hygienists, and other dental professionals. The university provides both traditional undergraduate courses to 9,000 students and continuing professional education (CPE) courses to 6,000 practicing professionals. UDH has just hired a new controller who wants to utilize ABC. The controller has identified three key activities performed by the university and the cost of each of these activities: • UDH has three buildings with a total of 150,000 square feet of classroom and facility space. Due to the large space requirements for labs and other training facilities, the undergraduate program utilizes 127,500 square feet. Total cost, $1,650,000. • UDH offers career placement services for undergraduate students, career counseling for active professionals taking CPE courses, and other student services to both groups. Total cost, $420,000. • UDH offers 1,500 different instructional courses each year, 975 of which are undergraduate courses. Total cost, $3,450,000. Required: 1. Compute an activity rate for each of the three activities identified by the controller. 2. Compute cost driver values and activity proportions for each group of students for each activity. 3. Determine the amount of costs assigned to each group of students and the cost per student to UDH to provide these three key activities. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute an activity rate for each of the three activities identified by the controller. Note: Round activity Rates to 2 decimal places. Activity Facilities Services Activity Cost Driver Square Feet Number of Students $ S Cost 1,650,000 420 000 Total Activity Driver 15 000 Activity Rate
dental hygienists, and other dental professionals. The university provides both traditional undergraduate courses to 9,000 students and continuing professional education (CPE) courses to 6,000 practicing professionals. UDH has just hired a new controller who wants to utilize ABC. The controller has identified three key activities performed by the university and the cost of each of these activities: • UDH has three buildings with a total of 150,000 square feet of classroom and facility space. Due to the large space requirements for labs and other training facilities, the undergraduate program utilizes 127,500 square feet. Total cost, $1,650,000. • UDH offers career placement services for undergraduate students, career counseling for active professionals taking CPE courses, and other student services to both groups. Total cost, $420,000. • UDH offers 1,500 different instructional courses each year, 975 of which are undergraduate courses. Total cost, $3,450,000. Required: 1. Compute an activity rate for each of the three activities identified by the controller. 2. Compute cost driver values and activity proportions for each group of students for each activity. 3. Determine the amount of costs assigned to each group of students and the cost per student to UDH to provide these three key activities. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute an activity rate for each of the three activities identified by the controller. Note: Round activity Rates to 2 decimal places. Activity Facilities Services Activity Cost Driver Square Feet Number of Students $ S Cost 1,650,000 420 000 Total Activity Driver 15 000 Activity Rate
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:dental hygienists, and other dental professionals. The university provides both traditional undergraduate courses to 9,000 students
and continuing professional education (CPE) courses to 6,000 practicing professionals. UDH has just hired a new controller who wants
to utilize ABC. The controller has identified three key activities performed by the university and the cost of each of these activities:
• UDH has three buildings with a total of 150,000 square feet of classroom and facility space. Due to the large space
requirements for labs and other training facilities, the undergraduate program utilizes 127,500 square feet. Total cost,
$1,650,000.
• UDH offers career placement services for undergraduate students, career counseling for active professionals taking CPE
courses, and other student services to both groups. Total cost, $420,000.
• UDH offers 1,500 different instructional courses each year, 975 of which are undergraduate courses. Total cost, $3,450,000.
Required:
1. Compute an activity rate for each of the three activities identified by the controller.
2. Compute cost driver values and activity proportions for each group of students for each activity.
3. Determine the amount of costs assigned to each group of students and the cost per student to UDH to provide these three key
activities.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Compute an activity rate for each of the three activities identified by the controller.
Note: Round activity Rates to 2 decimal places.
Activity
Facilities
Services
Activity Cost Driver
Square Feet
Number of Students
$
S
Cost
1,650,000
420 000
Total Activity Driver
15 000
Activity Rate
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