1. Compute the costs allocated to cost centers Clerical Salaries, Administrative Salaries, and Computer Services using the new allocation bases shown below. Use worksheet #1 that replicates the set up in Table 62. Total the new results.

The new allocation bases are:

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

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

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

2. Using worksheet #2 that replicates the set up in Table 61, enter the new direct cost and the new totals for indirect costs resulting from your work. Total the new results.