Traditional and activity-based costing. Use the information in Exhibit 12.14 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 12.14 DATA FOR TRADITIONAL AND ABC COST ALLOCATION, FOR PROBLEM 14 unit costs using a conventional approach Total Cost by Visit Type Basic Data 1 Number of visits 2 Direct materials (etc.) 3 Direct labor 4 Estimated overhead (total is a given) 5 Cost per visit: conventional method (1) Basic data: annual projections of overhead costs by activity A B D Initial (Given) Regular Intensive (Given) (Given) Total (A+B+C) 8,000 26,000 8,600 42,600 $40,000 $50,000 $65,000 $155,000 $100,000 $120,000 $280,000 $500,000 $229,000 Cost Driver Information 1 J K Cost Driver Units Activity (Given) (Given) (Given) 6 Intake $34,000 New visits 3,550 new visits 7 Medical records $35,000 Time spent 2,390 hours 8 Billing $65,000 Time spent 5,400 hours 9 Other $95,000 Visits 42,600 visits 10 Total $229,000 (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 (Given) (Given) Intensive (Given) Total (M+N+O) 11 New visits 2,500 700 350 3,550 12 Medical records 600 640 1,150 2,390 13 Billing 3,200 1,000 1,200 5,400 14 Other 8,000 26,000 8,600 42,600