A1 xfx GHA 4 TEMPLATE B D E F G H 1 GHA 4 TEMPLATE 2 3 This assignment is designed to help you learn how to determine total costs by combining direct and indirect costs for a particular department 4 In this GHA, you will be determining the total costs for three departments: (1) Physical Therapy (2) Occupational Therapy and (3) Speech Therapy. 5 To determine the total costs, you will need to add the direct costs to the Indirect costs using the template provided below. 6 Please use the example provided in the assignment description if you find that you need some support understanding the required calculations. 7 8 9 10 11 12 13 14 15 DIRECT COSTS The direct costs for each department are easily identifiable, because they are the costs that are directly attributable to the department. The direct costs are as follows: Physical Therapy (PT) 410,000 Occupational Therapy (OT) 190,000 Speech Therapy (ST) 120,000 Total Direct Costs 720,000 16 17 18 19 20 21 22 23 24 INDIRECT COSTS The indirect costs will need to be allocated to Physical Therapy (PT), Occupational Therapy (OT), and Speech Therapy (ST). The Indirect costs in this scenario have been identified as: (1) Clerical Salaries, (2) Administrative Salaries, and (3) Computer Services. The total indirect costs that need to be allocated to PT, OT, and ST are as follows: Clerical Salaries 56,000 Administrative Salaries 55,000 Computer Services 80,000 Total Indirect Costs 191,000 25 26 27 28 Each type of indirect cost will need to be allocated to each department based on an allocation basis that is appropriate for the particular type of cost. Clerical Salaries will be allocated based on Visit Volume. Administrative Salaries will be allocated based on the Proportion of Direct Costs Computer Services will be allocated based on the Number of Computers in Service. 30 31 32 33 34 35 Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Visit Volume 9,600 4,000 2.400 1600 Computers in Service 10 3 3 16