Tri-city college is organized into three instruction centers and two

Tri-City College is organized into three instruction centers and two service centers. The instruction centers are arts and sciences, education, and business administration. The service centers are buildings and grounds and central administration. The president wants to know the cost per student in each of the three instruction centers. As a part of the task, you have been asked to assist with the reassignment of overhead costs from the service centers to the instruction centers. The following data represent estimates for the current school year:

Required:

a.   Reassign the overhead costs from the service centers to the instruction centers, beginning with buildings and grounds. Allocate buildings and grounds by percentage of space occupied and central administration by number of employees.

b.   Calculate the overhead cost for each instruction center on a number-of-students basis.

 

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