Hello

I am currently working through a problem in Healthcare Finance: an introduction to Accounting and Financial Management by Louis C. Gapenski 5th edition and wondered if you could help me with the following question.

Consider the following data for clinical Laboratory: (attached)

a. Using the ABC techniques, determine the allocation rate for each activity

b. now, using the allocation rate, estimate the total cost of performing each test.

c. verify that the total annual costs aggregated from individual test costs equal the total annual costs of the laboratory given in the tabel above. (attached)

consider the following data for a clinical laboratory Activity Receive specimen Equipment setup Run Test Record results Transmit Results Total Costs Annual Costs 10000 25000 100000 10000 5000 150000 ta for a clinical laboratory Cost Drivers number of tests number of minutes per test number of minutes per test number of minutes per test number of minutes per test Activity Data Test A Test B Test C Test D 2000 1500 1000 500 5 5 10 10 1 5 10 20 2 2 2 4 3 3 3 3