Question

Identify Activity Bases For a major university, select the activity base most appropriate for each cost listed below. An activity base may be used more than once or not used at all. Cost: Activity Base: 1. Financial aid office salaries 2. Office supplies 3. Instructor salaries 4. Housing personnel wages 5. Employee wages for maintaining student records 6. Admissions office salaries

Answer 1

The appropriate activity bases for each cost in a major university are: 1. Financial aid office salaries - number of students receiving financial aid, 2. Office supplies - number of employees using office supplies, 3. Instructor salaries - number of courses taught, 4. Housing personnel wages - number of students living in university housing, 5. Employee wages for maintaining student records - number of students enrolled in the university, 6. Admissions office salaries - number of applications processed.

Step-by-step explanation:

1. Financial aid office salaries - The activity base for this cost could be the number of students receiving financial aid, as the salaries are directly related to the number of students served.

2. Office supplies - The activity base for this cost could be the number of employees using office supplies, as the usage and need for supplies would vary based on the number of employees.

3. Instructor salaries - The activity base for this cost could be the number of courses taught, as salaries would be directly linked to the number of courses and therefore, the number of instructors needed.

4. Housing personnel wages - The activity base for this cost could be the number of students living in university housing, as the personnel wages would be directly related to serving the housing needs of the students.

5. Employee wages for maintaining student records - The activity base for this cost could be the number of students enrolled in the university, as the workload for maintaining student records would increase with the number of students.

6. Admissions office salaries - The activity base for this cost could be the number of applications processed by the admissions office, as salaries would be directly related to the workload of processing applications.

Answer 2

Question Completion:

Cost: Activity Base:

1. Financial aid office salaries Select Number of enrollment applications Number of students Student credit hours Number of enrolled students and alumni Number of financial aid applications Number of students living on campus

2. Office supplies Select Number of enrollment applications Number of students Student credit hours Number of enrolled students and alumni Number of financial aid applications Number of students living on campus

3. Instructor salaries Select Number of enrollment applications Number of students Student credit hours Number of enrolled students and alumni Number of financial aid applications Number of students living on campus

4. Housing personnel wages Select Number of enrollment applications Number of students Student credit hours Number of enrolled students and alumni Number of financial aid applications Number of students living on campus

5. Student records office salaries Select Number of enrollment applications Number of students Student credit hours Number of enrolled students and alumni Number of financial aid applications Number of students living on campus

6. Admissions office salaries Select Number of enrollment applications Number of students Student credit hours Number of enrolled students and alumni Number of financial aid applications Number of students living on campus

Answer:

Activity Cost Appropriate Activity Base

1. Financial aid office salaries Number of financial aid applications

2. Office supplies Number of students

3. Instructor salaries Number of students Student credit hours

4. Housing personnel wages Number of students living on campus

5. Student records office salaries Number of students

6. Admissions office salaries Number of enrollment applications

Step-by-step explanation:

An activity base is the activity that is measured for the purpose of allocating overhead costs to different functions in an organization or department. Examples of activity bases are given above and are always expressed as a number of some variables.