Worksheet 1 is example of rehab cost center direct and indirect cost totals, and worksheet 2 is example of indirect costs allocated to rehab cost center, describing how the indirect cost is allocated? This task will change the allocation bases input for

a) Number of visits (volume),

b) Proportion of direct costs, and

c) Number of computers in service.

Compute the costs allocated to cost centers ?clerical salaries?, ?administrative salaries?; and ?computer services? using the new allocation bases shown below.

The new allocation bases are:

a= # visits (volume): pt=9,600/ot=4,000/st=2,400/total=16,000(16,000 x $3.50=$56,000) b= proportion of direct costs: pt=60%/ot=25%/st=15%/total =100 %(%x$55,000) c= #computers in service: pt=10/ot=3/st=3/total = 16 (16x$5,000 each = $80,000).

Enter the new direct cost and the new totals for indirect costs resulting from your work. total the new results.

Worksheet #1

Allocation Key:

A= # Visits (Volume): PT=9,600/OT=4,000/ST=2,400/Total=16,000(16,000 x $3.50=$56,000)

B= Proportion of Direct Costs: PT=60%/OT=25%/ST=15%/Total =100%(%x$55,000)

C= #Computers in Service: PT=10/OT=3/ST=3/Total = 16 (16x$5,000 each = $80,000)

Worksheet #2

Clerical Administrative Computer Total Salaries Salaries Allocation Basis: A Indirect Cost to be Allocated $56,000 $55,000 Allocated to: Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Proof Total B $56,000 $55,000 Services Indirect Cost $80,000 $191,000 $80,000 $191,000 Rehab Cost Centers Direct Cost Indirect Cost Total Physical Therapy Occupational Therapy Speech Therapy Total 191,000 191,000 191,000 $750,000 $191,000 $941,000 Note: Direct Cost proportions, rounded, are as follows: PT=60%/OT-25%/ST=15%/Total = 100% Rehab Cost Centers Physical Therapy Occupational Therapy Speech Therapy Total Direct Cost $450,000 187,500 112,500 $750,000 Indirect Cost $116,600 42,750 31,650 $191,000 Note: Direct Cost proportions, rounded, are as follows: PT=60%/OT-25%/ST=15% /Total = 100% Total $566,600 230,250 144,150 $941,000