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4. Assume for this question that the cost object is number of patients, classify each of the costs in table A into variable and fixed
4. Assume for this question that the cost object is number of patients, classify each of the costs in table A into variable and fixed cost?
5. Calculate the total costs and cost per patient years for each program using the simple costing method. Assume total overhead is allocated based on patient-years.
Crosstown Health Center runs two programs: drug addict rehabilitation and aftercare (counseling and support of patients after release from a mental hospital). The center's budget for 2022 follows: IdnIe A Kim Yu, the director of the center, is keen on determining the cost of each program. Yu compiles the following data describing employee allocations to individual programs Yu has recently become aware of activity-based costing as a method to refine costing systems. She asks the head of account department, how she should apply this technique. The account department obtains the following budgeted information for 2022: \begin{tabular}{|l|l|l|l|} \hline & Drug & Aftercare & Total \\ \hline Squarefeetofspaceoccupiedbyeachprogram & 10,800 & 14,400 & 25,200 \\ \hline Patient-years of service & 60 & 72 & 132 \\ \hline Number of laboratory tests & 1,680 & 840 & 2,520 \\ \hline \end{tabular}Step by Step Solution
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