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

Question Completion:

Cost:Activity Base:

1. Financial aid office salariesSelect 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 suppliesSelect 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 salariesSelect 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 wagesSelect 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 salariesSelect 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 salariesSelect 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

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

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.

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