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Distribute the departmental costs to the college
Course:- Managerial Accounting
Reference No.:- EM131326983




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Wyoming 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 $130,000
Registrar 221,000
Computer Services 468,000

Division Budgeted
Enrollment Budgeted
Credit Hours Planned Courses
Requiring Computer Work
Liberal Arts 2,300 43,000 25
Sciences 1,450 37,750 37
Business Administration 1,350 31,750 37

Required:

1. Distribute the departmental costs to the college's three divisions based on the allocation base given. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)


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

Answered:-

Verified Expert

In this solution we have calculated the cost allocated to various departments of the organization. Apart from that alternative method of cost allocation is also discussed.



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