Managerial Accounting Chapter $7($omit Appendix$)$ Case $\backslash$#$1$: Unit $3$ Northern Community College $($NCC$)$ has $4,000$ full$-$time students and offers a variety of academic programs in three areas: professional studies, arts and technology. The professional studies programs prepare students for administrative and clerical jobs in a variety of professional settings, including accounting, medicine and law. The arts program's offerings are wide ranging and include graphic design, digital animation, culinary arts, cosmetology$,$ and music arts. The technology programs are also varied, including information technology, medical laboratory technology, electrical engineering technology, pharmacy technology, and natural resources technology. The chief financial officer of NCC$,$ Lynn Maple, has consistently emphasized to other members of the senior management team the importance of understanding the costs of delivering the various academic programs. To that end, the costing system used at NCC tracks the direct costs of each program, which are shown below on an annual basis, along with the number of full$-$time students:Item Full$-$time studentsProfessional StudiesTeaching support Facilities It is very important to understand the overhead costs consumed by each academic program at NCC in determining the full cost of operating the programs. Central administration at NCC allocates financial resources to academic programs based on the estimated full cost per student of delivering the program. The overhead costs at NCC are significant, totaling over $\backslash (60\backslash \%\backslash )$ of direct costs. Total annual overhead costs at NCC are as follows:Required: $1.$ Using the traditional approach to assigning overhead costs to academic programs: WWW$.$YORKVILLEU.CA BUSI $1043$ INTRODUCTION TO FINANCIAL ACCOUNTING $4$ a$.$ Calculate the predetermined overhead rate. b$.$ Assign the overhead costs to each academic program using the predetermined rate. c$.$ Calculate the total cost per student $($direct costs plus overhead$)$ of operating each academic program. $2.$ Using ABC, complete the following requirements: a$.$ Complete the first$-$stage allocation of overhead costs to academic programs. b$.$ Calculate the activity rates for each of the activity cost pools. c$.$ Using the activity rates calculated in $($b$),$ complete the second$-$stage allocation of overhead to academic programs. $3.$ Based on the results of $(2),$ calculate the total cost per student $($direct costs plus overhead$)$ of operating each academic program. $4.$ Draft a memo to Maple explaining the key reasons for differences in the total cost per student of operating each academic program that arise between traditional costing approach and ABC.