An ophthalmology practice is analyzing it outputs, cost, and prices to determine if changes are needed. The practice provides five types of eye surgery: Lasik, Photorefractive keratectomy, Lens implants, Cataract surgery and Vitrectomy. Current output costs are based on total practice costs of $2,000,000 and the physicians assessment in 2016 of how much time she devotes to each type of surgery (surgery is performed twice per week or 768 hours per year are devoted to surgery).

Construct an activity-based budget based on the cost per output calculated in part 2 with a 3% inflation factor, the forecasted output below, and assuming non-productive time can be reduced to $300,000.

Forecasted (cost/output*1.03)

Surgery Quantity Budget Standard Budget

Lasik 865 ________ ________

Photorefractive keratectomy 500 ________ ________

Lens implants 530 ________ ________

Cataract surgery 270 ________ ________

Vitrectomy 245 ________ ________

Non-productive time $300,000

Total ________