Traditional and activity-based costing. Use the information in Exhibit 12.13 to answer these questions.

a. What is the per unit cost of an initial, regular, and intensive visit using the conventional and ABC approaches?

b. What is the total cost of initial, regular, and intensive visits using the conventional and ABC approaches?

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Additional basic data Basic data and calculation of EXHIBIT 12.13 DATA FOR TRADITIONAL AND ABC COST ALLOCATION, FOR PROBLEM 13 unit costs using a conventional approach Total Cost by Visit Type Basic Data A B C D Initial Regular Intensive (Given) (Given) (Given) Total (A+B+C) 1 Number of visits 6,000 24,000 7,600 37,600 2 Direct materials (etc.) $30,000 $25,000 $45,000 $100,000 3 Direct labor $90,000 $90,000 $270,000 $450,000 4 Estimated overhead (total is a given) $200,000 5 Cost per visit: conventional method (1) Basic data: annual projections of overhead costs by activity Cost Driver Information I J K Cost Driver Units Activity (Given) (Given) (Given) 6 Intake $32,500 New visits 3,150 new visits 7 Medical records $32,500 Time spent 2,090 hours 8 Billing $55,000 Time spent 5,080 hours 9 Other $80,000 Visits 37,600 visits $200,000 10 Total (2) Basic data: actual annual operating results of cost drivers to be used to assign ABC overhead cost Visit Type M N P Initial Regular Intensive Total (Given) (Given) (Given) (M+N+O) 11 New visits 2,200 800 150 3,150 12 Medical records 500 540 1,050 2,090 13 Billing 3,040 916 1,124 5,080 14 Other 6,000 24,000 7,600 37,600