Consider the following data for Swank Medicals laboratory:

			Activity Data
Activity	Annual Costs	Cost Driver	Test A	Test B	Test C	Test D
Receive Specimen	15,000	Number of tests	1500	1500	1000	1000
Equipment Setup	20,000	Number of Minutes per test	5	5	5	10
Run test	100,000	Number of Minutes per test	1	5	10	15
Record results	5,000	Number of Minutes per test	2	2	2	3
Transmit results	5,000	Number of Minutes per test	3	3	3	5
	145,000

a. Using ABC techniques, determine the allocation rate for each activity.

b. Now, using this allocation rate, estimate the total cost of performing each test.

c. Verify that the total annual costs aggregated from individual test costs equal the total annual costs of the laboratory given in the table above.