Question

The University of Dental Health (UDH) is a state-run university focusing on the education and training of dentists, dental assistants, dental hygienists, and other dental professionals. The university provides both traditional undergraduate co urses to 7,200 students and continuing professional education (CPE) courses to 4,800 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 3 buildings with a total of 120,000 square feet of classroom and facility space. Due to the large space requirements for labs and other training facilities, the undergraduate program utilizes 102,000 square feet. Total cost, $1,284,000. 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, $300,000. UDH offers 1,600 different instructional courses each year, 1,040 of which are undergraduate courses. Total cost, $3,200,000. Required: 1. Compute an activity rate for each of the three activities identified by the controller. (Round activity Rates to 2 decimal places.)

Answer 1

	Activity	Activity Cost driver	Cost $ -A	Total Activity Driver-B	Activity Rate $ (A/B)
	Facilities	No. of square feet	12,84,000	1,20,000	10.70
	Services	No. of students	3,00,000	12,000	25.00
	Instructions	No. of courses	32,00,000	1,600	2,000.00