Question
a. Using ABC techniquest, determine the allocation rate for each activity. b. Now , using this allocation estimate the total cost of performing each test.
a. Using ABC techniquest, determine the allocation rate for each activity.
b. Now , using this allocation estimate the total cost of performing each test.
c. Verify the total annual costs aggregated from individual test costs equal the total annual costs of the laboratory given the data above.
activity annual costs cost driver test a test b test c test d
recieve specimen $10,000 no. of tests 2,000 1,500 1,000 500
set up equipment 25,000 no. of mins. per test 5 5 10 10
reun test 100,000 no. of mins. per test 1 5 10 20
record results 10,000 no. of mins. per test 2 2 2 4
transmit results 5,000 no. of mins. per test 3 3 3 3
total costs $150,000
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