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1.Fill in the blanks for the ABC analysis process map 2.Based on the process map, calculate the assigned indirect costs using the traditional method. Explain
1.Fill in the blanks for the ABC analysis process map 2.Based on the process map, calculate the assigned indirect costs using the traditional method. Explain the pros and cons of this in comparison to activity-based costing. 3.Using the process map, which activity should be charged the highest amount of associated indirect costs? The lowest?
Surgeon Process Map for ABC Analysis Total Indirect Costs $280,000 Traceable Costs $30,000 $42,000 $208,000 Activity Supervision Consultation Surgery #of Operations Cost Driver of Patients Seen #of Patients Seen High High Cost Object- Care Needed High 207 200 207 Low Low Low 245 400 400 Cost per Unit Driver High $10,231 High High Total Cost $27,677 Low Low Low per Activity $208,000 $42,000 $30,000 lirect costs using the traditional method. Explain the pros and cons of this in comparison to activity rged the highest amount of associated indirect costs? The lowestStep by Step Solution
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