Please try be clear on the steps so I can understand the process of answering these question's on this problem. Thank you in for your help on this problem.

USC school has generated and supplied the following data to you, an Activity Based Costing consultant, for use in implementing an activity-based costing system.This was USC's first attempt at implementing ABC.The data comes from the year 2020 results:

Activity Cost Pool Name/NumberActivity MeasureTotal Activity

AdmissionsNumber of students100 students

AcademicNumber of majors75 majors

AthleticsNumber of total events300 events

All other costsNumber of faculty120 faculty

Employees were also interviewed as to how they spent their time; their responses were tabulated below and represent the categories of overhead identified.

AdmissionsAcademicsAthleticsOthers

Student assistance25%15%50%10%486,000

Facilities overhead30%40%20% 10%382,000

General labor5%0%50% 45%292,000

All other costs10%20%20% 50%500,000

For the year 2021, USC has forecast $2,400,000 in total revenue.

Number of majors expected in 202185

Number of total athletic events expected in 2021330

Required:

1.I have need to make a report showing first-stage allocations of overhead costs to the activity cost pools.

2.I need to compute the activity rates for the activity cost pools.

3.I need to prepare a margin report for the year 2021 for USC's activities, using traditional ABC format.Assume USC expects to "break even" for the year.

4.I need to report how many new students could USC take on in 2021 without generating a loss?

5.I need to report how many new students should USC take on in 2021 if they would like to have a 10% margin of safety?

Answer rating: 100% (QA)

1 FirstStage Allocation of Overhead Costs to the Activity Cost Pools To perform the firststage allocation we need to allocate the total overhead costs ... View the full answer