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	$	118,000
Registrar		197,000
Computer Services		420,000

  

Division	Budgeted Enrollment			Budgeted Credit Hours			Planned Courses Requiring Computer Work
Liberal Arts		1,100			31,000			12
Sciences		850			28,750			25
Business Administration		750			22,750			25

  

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:

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) Registrar (credit hours) Computer Services (courses requiring computer)

2. Choose the better allocation base for distributing the cost to the following departments:

	Registrar Computer Services

Answer 1