Metro University uses activity-based costing to assign indirect costs to academic departments, using four activities.

The activity base, budgeted activity cost, and estimated activity-base usage for each activity are identified as follows:

The activity-base usage associated with the Chemistry Department and History Department is as follows:

Determine the:

a. Activity rate for each activity.

b. Total activity cost for the Chemistry Department and the History Department.

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Activity Academic support Facilities Instruction Student services Activity Base Number of departments Square feet Number of course sections Number of students Budgeted Activity Cost $ 400,000 1,800,000 2,000,000 360,000 Activity-Base Usage 40 departments (dept.) 200,000 square feet (sq. ft.) 1,000 sections (sec.) 4,500 students (stdt.)