Consider the following data for a clinical laboratory Activity cost driver test

Question

Consider the following data for a clinical laboratory

Activity                                      cost driver                     test a                test b                 test c              test d

Recieve specimen   $ 10, 000     number of test               2,000               1500                  1000              500

Equipment set up   25,000    number of minutes per test    5             5                           10                         10

run test       100,000        number of minutes per test        1                 5                              10                       20

record results 10,000       number of minutes per test           2                     2                     2                       4

transmit results 5,000        number of minutes per test           3             3                   3             3

total costs   150,000

A. Using the ABC METHOD, determine all allocation rate for each activity

b. using the allocation rate, estimate the total cost of perfeorming each test

c. verify the total anual cost from individuls test costs equal the annual costs of the laboratory.

Explanation / Answer

this que must b contains 5000 points... :)

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