Harmon Academy, a private school, serves 500 students: 200 in the middle school (grades 6 to 8) and.

Harmon Academy, a private school, serves 500 students: 200 in the middle school (grades 6 to 8) and 300 in the high school (grades 9 to 12). Each school group has its own assistant principal, and there is one principal, Brian Smith, for the academy. For any single student, almost all of Harmon s costs are indirect. Harmon currently has five indirect cost categories, which are listed in the following table. Smith wants to develop an activity-based costing system for the school. He identifies four activities-academic instruction, administration, sports training, and community relationships-related to the educational enterprise. Smith and his team identify number of students as the cost driver of academic instruction and administration costs, and the number of team sports offered by the school as the driver of sports training costs. The cost of maintaining community relationships-dealing with the town council and participating in local activities-is a facility-sustaining cost that the school has to incur each year. The table shows the percentage of costs in each line item used by each activity. REQUIRED 1. What is the overall cost of educating each student? Of this cost, what percentage is the cost of academic instruction? Of administration? 2. Smith is dismayed at the high cost of sports training. Further examination reveals that $300,000 of those costs are for ice hockey, a sport pursued by a total of 40 students. What would be the overall cost of educating each student