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Drug Aftercare Total Square feet of space occupied by each program 4000 18000 22000 Patient-years of service 40 80 120 Number of laboratory tests 1900
Drug | Aftercare | Total | |
Square feet of space occupied by each program | 4000 | 18000 | 22000 |
Patient-years of service | 40 | 80 | 120 |
Number of laboratory tests | 1900 | 100 | 2000 |
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. c. What benefits can Southern Health Center obtain by implementing the ABC system? 2. What factors, other than cost, do you think Southern Health Center should consider in allocating resources to its programs? 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. c. What benefits can Southern Health Center obtain by implementing the ABC system? 2. What factors, other than cost, do you think Southern Health Center should consider in allocating resources to its programs
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