Community Technical College Allocates Administrative Costs to Its Teaching Departments

question 80

Essay

Community Technical College allocates administrative costs to its teaching departments based on the number of students enrolled,while maintenance and utilities are allocated based on square feet of classrooms.Based on the information below,what is the total amount of expenses allocated to each department (rounded to the nearest dollar)if administrative costs for the college were $150,000,maintenance expenses were $70,000,and utilities were $85,000?
Teaching Size of
Department Students Classroom
Electronics……………. 117 900 sq.ft.
Automotive…………... 156 750 sq.ft.
Computers………….... 429 1,200 sq.ft.
Plumbing…………….. 78 150 sq.ft.

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Definitions:

Marginal Revenue

The revenue gain from the sale of an additional good or service unit.

Marginal Revenue

The growth in income arising from the sale of an extra unit of a product or service.

Price Discriminate

The practice of selling the same product or service at different prices to different customers, based on factors such as willingness to pay, market segment, or purchase location.