Devin Booker Health Center runs two programs: drug addict rehabilitation and aftercare (counseling and support of patients after release from a mental hospital). The center's budget for 2020 follows. Professional salaries: 4 physicians x $150,000 $600,000 12 psychologists $75,000 900,000 16 nurses X $30,000 480,000 $1,980,000 Medical supplies 242,000 Rent and clinic maintenance 138,600 Administrative costs to manage patient charts, food, laundry 484,000 Laboratory services 92,400 Total $2,937,000 Lebron James, the director of the center, is keen on determining the cost of each program. James compiles the following data describing employee allocations to individual programs: Drug Aftercare Total Employees Physicians 4 4 Psychologists 4 8 Nurses 6 10 16 James has recently become aware of activity-based costing as a method to refine costing systems. He asks his accountant, Marcellus Peterson, how he should apply this technique. Peterson obtains the following budgeted information for 2020: 12 Square feet of space occupied by each program Patient-years of service Number of laboratory tests Drug 9,000 50 1,400 Aftercare 12,000 60 Total 21,000 110 2,100 700 Required 1. a. Selecting cost-allocation bases that you believe are the most appropriate for allocating indirect costs to programs, calculate the budgeted indirect cost rates for medical supplies, rent and clinic maintenance; administrative costs for patient charts, food, and laundry; and laboratory services. b. Using an activity-based costing approach to cost analysis, calculate the budgeted cost of each program and the budgeted cost per patient-year of the drug program