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Healthcare Finance Activity Data Service A Service B 7,000 15,000 Activity Annual Costs Cost Driver Check-in Assessment Diagnosis Treatment Check-out Billing 100,000 Visit volume 250,000

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Healthcare Finance Activity Data Service A Service B 7,000 15,000 Activity Annual Costs Cost Driver Check-in Assessment Diagnosis Treatment Check-out Billing 100,000 Visit volume 250,000 Minutes per service 600,000 Minutes per service 15 20 10 Minutes per service Visit volume Number of bills 1,200,000 7,000 15,000 125,000 250,000 Toral $2525,000 a. Using ABC techniques, determine the allocation rate for each activity b. Determine the costs per visit for each type of service. c. Verify that the total annual costs aggregated from individual visit costs equal the total annual costs of the practice given in the table above

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