Dogs for Diabetes (DFD) Is a Not-For-Profit Organization Focused on Training

Dogs for Diabetes (DFD) is a not-for-profit organization focused on training dogs and handlers to assist young children with diabetes. The dogs are trained to detect low and high blood sugar levels, and ring an alarm to notify parents or other caregivers of the potentially dangerous condition. DFD provides both education for the dogs, and training for handlers (kids or parent). Currently there are 60 dogs being trained and there are 14,000 hours per year of training scheduled for these dogs. DFD also provides training for the children and families who will host a dog, and there are 2,000 hours of such training scheduled for the 20 families who will host a dog this year. DFD has just hired a new controller who wants to utilize ABC. The controller has identified 2 key activities performed by the organization as it trains dogs and handlers, and the cost of each of these activities:
• DFD has 1 building with a total of 30,000 square feet of space. Due to the large space requirements for kennels, dog runs, and other facilities for the dogs, the dog education service utilizes 20,000 square feet. The facility is rented at an annual cost of $60,000.
• Salaries for training personnel, $240,000 annually.
Required:
a. Select a cost driver and compute an activity rate for each of the activities identified by the controller.
b. Compute activity cost driver values and activity proportions for each activity.
c. Determine the amount of costs assigned to each group of students and the cost per student to UDH to provide these three key activities.