Answer:
Middleton University
Activity Cost of Instruction per student in the introductory and graduate financial accounting courses:
Total Instruction cost $57,600
Number of students = 65 (40 + 25)
Instruction per student = $57,600/65 = $886.15
Explanation:
a) Data and Calculations
Activities: Time Spent Activity Cost Introductory Graduate
Course preparation 30% $28,800 $17,723 $11,077
Classroom instruction 60% $57,600 $35,446 $22,154
Appointments with students 10% $9,600 $5,908 $3,692
Annual salary $96,000 $59,077 $36,923
b) The activities are three for each of introductory and graduate courses. The cost (annual salary) of the professor is allocated according to the time spent on each activity. This cost is further allocated between the introductory and graduate classes according to the number of students in each course. Overall, the same amount per each activity is spent on each student in both courses.
