P4.

Chesapeake Technical College allocates administrative costs to its teaching departments based on the number of students enrolled, while maintenance and utilities are allocated based on square feet of classrooms. Based on the information below, what is the total amount of expenses allocated to each department (rounded to the nearest dollar) if administrative costs for the college were $180,000, maintenance expenses were $70,000, and utilities were $80,000? (Check: Total costs to Electronics Dept should be a number between $$69,000 and $74,000).

(3 points)

Teaching Department	Students	Size of Classroom
Electronics	117	900 sq. ft.
Automotive	156	750 sq. ft.
Computers	429	1,200 sq. ft.
Plumbing	78	150 sq. ft.

Allocation of Administrative Costs:

Teaching Department	Students	%	Allocated
Electronics
Automotive
Computers
Plumbing
Totals

Allocation of Maintenance and Utilities Expenses:

Teaching Department	Square feet	%	Total Allocated
Electronics
Automotive
Computers
Plumbing
Totals

Total Costs:

Teaching Department	Administrative	Maintenance and Utilities	Total
Electronics
Automotive
Computers
Plumbing
Total

P5.

Use the Wally-Marts investment center information below to calculate (a) return on total investment and (b) investment center residual income. (2 points).

Net Income	$315,900
Average Invested Assets	$2,100,000
Target Net Income	8% of division assets

(a) Investment Center Return on Investment =

(b) Residual Income =