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3. Way Up Health Center runs two programs: drug addict rehabilitation and aftercare (counseling and support of patients after release from a mental hospital). (Click the icon to additional information.) Yank has recently become aware of activity-based costing as a method to refine costing systems She asks her accountant, Carl Mathes, how she should apply this technique. Mathes obtains the following budgeted information for 2017 2(Click the icon to view the budget data.) Read the requirements Requirement 1. a. Selecting cost-allocation bases that you believe are the most appropriate for allocating indirect costs to programs, calculate the budgeted indirect cost rates for medical supplies; rent and clinic maintenance; administrative costs for patient charts, food, and laundry; and laboratory services Begin by completing the table below to identify the most appropriate cost driver for each cost. Cost Cost Driver Medical supplies Rent and clinic maintenance Administrative costs for patient charts, food, and laundry Laboratory services Calculate the budgeted indirect cost rates for each category. (Round the cost driver rates to the nearest cent, SX.XX, as needed. Abbreviations used: maintenance = clinic maintenance; Administrative costs Administrative costs for patient charts, food, and laundry; sq ftsquare foot.) Cost driver rate Medical supplies Rent and maintenance Administrative costs Laboratory services Requirement 1. b. Using an activity-based costing approach to cost analysis, calculate the budgeted cost of each program and the budgeted cost per patient-year of the drug program Calculate the budgeted cost of the drug program in this step, and then the budgeted cost of the aftercare program in the following step Aftercare Total budgeted cost The budgeted cost per patient-year of the drug program is $ Requirement 1. c. What benefits can Way Up Health Center obtain by implementing the ABC system? (Select all that apply.) The ABC system will help Yank determine which programs are the most costly to operate. This will be useful in making long-run decisions as to which programs to offer or emphasize A. B. The ABC system more accurately allocates costs because it identifies better cost drivers C. By implementing the ABC system, Yank can gain a more detailed understanding of costs and cost drivers. The system can yield insight into the efficiencies with which various activities are performed