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Princeton Offers a Large Range of Undergraduate Courses

  • Date Submitted: 08/25/2016 01:02 AM
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Princeton offers a large range of undergraduate courses

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Chapter Four Assignment
Part One
Princeton offers a large range of undergraduate courses. The University is interested in determining the cost equation for the facilities cost as a function of student credit hours so that it can more accurately budget its facilities costs as enrollment grows. Information for the high and low cost semesters and volumes for last 5 years appears below:

Semester Student Credit Hours Facilities Cost
Spring 2014 160,000 $750,000
Fall 2017 140,000 $660,000

Using the high-low method, with student credit hours as the activity driver, what is the equation in the form C(x)=vc/u*x+FC for facilities cost as a function of student credit hours?



Part Two
Diva Products produces scarves. The estimated fixed costs for the year are $164,500, and the estimated variable costs per unit are $9. The company expects to produce and sell 40,000 scarves at a unit selling price of $16 per unit. How much is the break-even point in units?



Chapter Six Assignment
Bayard Backup is a manufacturer of data storage devices. Bayard operates two service departments—maintenance and technology, and two production departments—assembly and testing. Maintenance costs are allocated on the basis of square footage occupied, and technology costs are allocated on the basis of the number of workstations. The following data relate to allocations of service department costs:

Maintenance Technology Assembly Testing
Service department costs $400,000 $230,000
Square footage 2,000 3,000 20,000 30,000
Workstations 4 16 10 30

1. How much maintenance costs will be allocated to the assembly department using the direct method?



2. How much technology cost will be allocated to the assembly department using the direct method?


3. How much maintenance cost will be allocated to the...

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