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