Dogs for Diabetes (DFD) is a not-for-profit organization focused on training dogs and handlers to assist young
Question:
Dogs for Diabetes (DFD) is a not-for-profit organization focused on training dogs and handlers to assist young children with diabetes. The dogs are trained to detect low and high blood sugar levels, and ring an alarm to notify parents or other caregivers of the potentially dangerous condition. DFD provides both education for the dogs, and training for handlers (kids or parent). Currently there are 60 dogs being trained and there are 14,000 hours per year of training scheduled for these dogs. DFD also provides training for the children and families who will host a dog, and there are 2,000 hours of such training scheduled for the 20 families who will host a dog this year. DFD has just hired a new controller who wants to utilize ABC. The controller has identified 2 key activities performed by the organization as it trains dogs and handlers, and the cost of each of these activities: 1. DFD has 1 building with a total of 30,000 square feet of space. Due to the large space requirements for kennels, dog runs, and other facilities for the dogs, the dog education service utilizes 20,000 square feet. The facility is rented at an annual cost of $60,000. 2. Salaries for training personnel, $240,000 annually. Required: a. Calculate cost driver and activity rate for each of the activities identified by the controller. (Round your answer to 2 decimal places.)
b. Calculate activity cost driver values and activity proportions for each activity. (Do not round intermediate calculations. Round your final answer to the nearest whole number.)
Activity Proportion
c. Determine the amount of costs assigned to each group of students and the cost per student to UDH to provide these 3 key activities. (Do not round intermediate calculations. Round your answer cost to 2 decimal places.)
Transcribed Image Text:
Activity Activity Cost Cost Tot ActivityActivity Driver Driver Facilities Sq Ft $60,00030,000 iX) per Sq Ft Personnel | # of Hours | S240,000 | 16,000 15.00 per Hour ActivityActivity Cost Cost Dog Handler Total Driver TrainingTraining Facilities Sq Ft 60,000 20,000 10,000 Personnel | # of Hours 240,000 14,000 2,000 Activity Cost Cost Dog Handler Training Traning Driver Sq Ft #Of Hours 60,000 ? Personne | 240,000 ? Total Cost Assigned Number of Dogs or Handlers 20? or handler
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a Calculate the cost driver and activity cost rate Activity based costing is a method of allocating ...View the full answer
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