A College's School of Liberal Arts has 3 departments Estimatedinformation for next year is presented below. Once tableinformation is completed please provide the followinginformation:

Does the allocation of equal amounts of indirect cost provide a"fair" allocation? Yes or No and explain

Which cost driver services the self-interest of the ScienceDepartment? History Department? English Department?

What cost driver(s) would you suggest that the school use toassign a "fair" portion of overhead costs to each department?Why?

INFORMATION:

Number of Students per year: Science = 1400, History = 800,English =400

Number of classes per semester: Science - 70, History = 40,English = 30

Number of professors: Science =20, History = 24, English =10

Revenues: Science = $30,000,000, History = $17,000,000, English= $9,000,000

Direct Expenses: Science = $25,000,000 History = $14,000,000English = $7,000,000

Each department keeps 20% of the profit it generates

Indirect costs are projected to be $5,000,000

Use a different table of the one below for each plan:

Plan 1: Allocate Equal Amounts of Indirect Costs to EachDepartment

Plan 2: Allocate Indirect Costs using # of Students as CostDriver

Plan 3: Allocate Indirect Costs using # of classes/semester ascost driver

Plans 4: Allocate Indirect Costs using # of professors as costdriver

	Science	History	English
Revenues
Direct Exp
Indirect Exp
Net Inc
20% Net