DBC$,$ TDABC, and ABC

The Bienestar Cardiology Clinic has two major activities: diagnostic and treatment. The two activities use four resources: nursing, medical technicians, cardiologists, and equipment. Detailed interviews have provided the following work distribution matrix shown below.

Resources

Activity Nursing Technicians Cardiologists Equipment Total Activity

Time

Diagnosing patients $0\mathrm{.}700\mathrm{.}800\mathrm{.}400\mathrm{.}6012,000$ hrs$.$

Treating patients $0\mathrm{.}300\mathrm{.}200\mathrm{.}600\mathrm{.}408,000$ hrs$.$

Total time $($hrs$.)4,0004,0006,0006,00020,000$

Cost $$80,000$ $$80,000$ $$320,000$ $$320,000$

The total time estimated corresponds to practical capacity $($interviewers adjusted the total time to about $80$ percent of the available time$).$ The equipment time is measured in machine hours. Thus, the total time $($at practical capacity$)$ in the system is $20,000$ hours. In considering the implementation of a TDABC model, the following unit times and transaction information are also provided:

Unit Time Driver Expected Activity

Driver Quantity

Diagnosing patients $3$ hrs No$.$ of patients $4,000$

Treating patients $0\mathrm{.}8$ hr$.$ No$.$ of treatments $10,000$

The clinic has identified three types of patients: those with no heart disease, those with mild heart disease, and those with severe heart disease. The following additional data are provided:

Patient Type Diagnosing Patients Treating Patients Average Time Spent Servicing

Each Patient Type $($Cycle Time$)$

No disease $2,00003$ hrs$.$

Mild disease $1,5005,0005\mathrm{.}6$ hrs$.$

Severe disease $5005,00011\mathrm{.}0$ hrs$.$

Activity cost $??$

Required:

$1.$ Calculate the activity costs for diagnosing and treating patients. Using the activity costs calculated, calculate the unit cost of servicing each type of patient using traditional ABC.

Activity rates

Diagnosing $fill in the blank $1$

$110$

Treating $fill in the blank $2$

$36$

Calculate the unit cost of servicing each type of patient using traditional ABC.

Unit Cost

No Disease $fill in the blank $3$

$110$

Mild $fill in the blank $4$

$230$

Severe $fill in the blank $5$

$470$

$2.$ Using TDABC$-$derived activity rates, calculate the unit cost of servicing each type of patient. If required round your answer to two decimal places.

Activity rates

Diagnosing $fill in the blank $6$

$120$

Treating $fill in the blank $7$

$32$

Unit Cost

No Disease $fill in the blank $8$

$120$

Mild $fill in the blank $9$

$?$ I have this one wrong, can you help me to solve this please.

Severe $fill in the blank $10$

$440$