Answer:
ABC at a College: Assigning Costs to Activities
Prince Town University
The Activity cost of instruction per student:
Introductory Economics = $13,750/50 = $275 per year and $137.50 per semester
Graduate Economics = $13,750/30 = $458.33 per year and $229.17 per semester
Explanation:
a) Data and Calculations:
50% teaching
35% research and writing
15% service activities (committee work and student advising)
Students in Introductory Economics = 50 per semester 100 per annum
Students in Graduate Economics = 30 per semester and 60 per annum
Total number of students taught per year = 160
Salary per year = $165,000
Teaching consumes $82,500 ($165,000 * 50%)
Instruction consumes $27,500 ($82,500/3)
Introductory Economics consume $13,750 ($27,500/2)
Graduate Economics consume $13,750 ($27,500/2)
The Activity cost of instruction per student:
Introductory Economics = $13,750/50 = $275 per year and $137.50 per semester
Graduate Economics = $13,750/30 = $458.33 per year and $229.17 per semester
