This question handles indirect cost allocation. Travis County Parks Department is revisiting its allocation of administrative overhead between two programs that serve different constituencies in the city.

Previously administrative costs were evenly separated between two community center programs: Program A and B. The new director wants to analyze two basic options for allocating the administrative costs: (1) share of number of service hours in each program or (2) share of all program participants in each program.

(1) Program A. The program provides an array of social activities to middle school aged children in all of Travis County eight neighborhood community centers. The program serves about 1,000 participants altogether, in various activities that typically average about two hours per week in each community center. The program operates 50 weeks out of the year.

(2) Program B.The program operates in five of Travis Countys eight community centers, and engages children aged 2 to 5 and a caretaker during the morning hours. About 800 children and their caretaker participate in the program each year. Classes meet in each community center, three times per week for about three hours per day. Program B operates for 36 weeks out of the year, as it is closed during the summer months and winter holidays.

1. Calculate cost allocation factors for each program, based on total programming hours during the year (note, you have no admin costs because you do not have costs, these will be percentagesof expense that add to 100 percent).

2. Calculate cost allocation factors based on number of participants served each year (note, Program B, base this on the number of child participants; express as percentages).