Park City Technical College allocates administrative costs to its teaching depar
ID: 2587591 • Letter: P
Question
Park City 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.
Required: 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 $180,000, maintenance expenses were $70,000, and utilities were $85,000?
Teaching Department Students Size of Classroom
Electronics 117 900 sq. ft.
Automotive 156 750 sq. ft.
Computers 429 1,200 sq. ft.
Plumbing 78 150 sq. ft.
Explanation / Answer
Expense Based on Electronics Automotive Computers Plumbing Administrative costs number of students $180,000 x 117/780 $180,000 x 156/780 $180,000 x 429/780 $180,000 x 78/780 Maintenance square feet $70,000 x900/3000 $70,000 x750/3000 $70,000 x1200/3000 $70,000 x150/3000 Utilities square feet $85,000 x 900/3000 $85,000 x 750/3000 $85,000 x 1200/3000 $85,000 x 150/3000 Total $73,500 $74,750 $161,000 $25,750