Lower Valley Medical Associates operates a walk-in medical clinic in Tempe, Arizona. (Click the icon to additional information.) Wu has recently become aware of activity-based costing as a method to refine costing systems. She asks her accountant, Don Zeiba, how she should apply this technique. Zeiba obtains the following budgeted information for 2020: (Click the icon to view the budget data.) Read the requirements Requirement 1. a. Selecting cost allocation bases that you believe are the most appropriate for allocating indirect costs maintenance, laboratory services, and general overhead. departments, calculate the budgeted indirect cost rates for medical supplies, rent and clinic Begin by completing the table below to identify the most appropriate cost driver for each cost. Cost Cost Driver Medical supplies Rent and clinic maintenance Laboratory services General overhead Calculate the budgeted indirect cost rates for each category. (Round the cost driver rates to the nearest cent, X.XX, as needed. Abbreviations used: maintenance = clinic maintenance: General overhead = General overhead including administrative staff: softsuare foot Choose from any list or enter any number in the input fields and then continue to the next question. - X - X More Info Data Table fing Lol d wi Urgent Care Total The clinic includes two different departments, Urgent Care, which serves patients with minor to moderate acute illnesses and injuries, and Living Well, which administers vaccines, school and work physicals, and conducts workshops on healthy living toples. The conter's budget for 2020 follows Living Well 12.000 5,000 17,000 Square feet of clinic space Patient visits Number of laboratory tests 19,500 25,500 45,000 ating ind Elin Ro me 12,000 4,000 16,000 Professional salarios: 4 physicians 2 X-ray technicians S 880.000 Bel x S 220,000 90,000 130,000 180.000 Print Done cd 12 nurses 1,560,000 MO 90,000 $ 1 nutritionist x S 90,000 2.710.000 RE Medical supplies 900.000 La Rent and clinic maintenance 221,000 256.000 Laboratory services Coloradood inoludios administrative stof 517.500 Est cent, X.XX, as needed. Abbreviations used: maintenance = clinic maintenance; General overhead = General CE ov Che Print Done tion. More Info - X - X Data Table LE Fing WI Total Urgent Care 5,000 Living Well 12,000 Square feet of clinic space 17,000 45,000 Patient visits 19,500 25,500 Rent and clinic maintenance 221.000 Laboratory services 256.000 517.500 General overhead, including administrative staff $ 4,604,500 Total Kiley Wu, the director of the clinic, is keen on determining the cost of each department. Wu complies the following data describing employee allocations to individual programs: Re ma fating ind Elinic Number of laboratory tests 12,000 4,000 16,000 Be Print Dono CA M Urgent Care Total Living Well 3 Rd 4 1 Physicians X-ray technicians 2 2 La 8 Nurses GE 4 12 Nutritionist 1 1 CE est cent, X.XX, as needed. Abbreviations used: maintenance = clinic maintenance: General overhead = General nu Che Print Done stion. Calculate the budgeted indirect cost rates for each category. (Round the cost driver rates to the nearest cent, X.XX, as needed. Abbreviations used: maintenance = clinic maintenance; General overhead = General overhead, including administrative staff; sq ft = square foot.) : Cost driver rate Medical supplies : Rent and maintenance - Laboratory services : ni General overhead Requirement 1. b. Using an activity-based costing approach to cost analysis, calculate the budgeted cost of each department and the budgeted cost per patient visit of each department. Calculate the budgeted costs for the Urgent Care department in this step, and then the budgeted costs for the Living Well department in the following step. (Complete all input fields. Enter a "0" for any zero balances. Round the cost per patient visit amounts to the nearest cent, X.XX.) Lower Valley Medical Associates operates a walk-in medical clinic in Tempe, Arizona. She asks her accountant, Don Zeiba, how she should apply this technique. Zeiba obtains the following i (Click the icon to additional information.) budgeted information for 2020: Wu has recently become aware of activity-based costing as a method to refine costing systems. Click the icon to view the budget data.) Read the requirements. Requirement 1. b. Using an activity-based costing approach to cast analysis, calculate the budgeted cost of each department and the budgeted cost per patient visit of each department Calculate the budgeted costs for the Urgent Care department in this step. and then the budgeted costs for the Living Well department in the following step. (Complete all input fields. Enter a "0" for any zero balances. Round the cost per patient visit amounts to the nearest cent, X.XX.) Urgent Care Living Well Professional salaries: Physicians X-ray technicians Nurses Nutritionists Total salarios Lower Valley Medical Associates operates a walk-in medical clinic in Tempe, Arizona. (Click the icon to additional information.) Wu has recently become aware of activity-based costing as a method to refine costing systems. She asks her accountant, Don Zeiba, how she should apply this technique. Zeibe obtains the following budgeted information for 2020: Click the icon to view the budget data.) Read the requirements. Nutritionists Total salaries Medical supplies Rent and clinic maintenance Laboratory services Gonoral overhead Total cost Number of patient visits Cost per patient visit Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 1. c. What benefits can Lower Valley Medical Associates obtain by implementing the ABC system? (Select all that apply.) A. The ABC system chooses cost drivers for overhead costs that have a cause-and-effect relationship between the cost drivers and the costs. B. The ABC system will assist Wu in setting prices for the programs that more accurately reflect the costs of each program. C. Designing, planning, and implementing an ABC system is often less time consuming, complex, and costly that designing, planning, and implementing a simple costing system. D. By implementing the ABC system, Wu can gain a more detailed understanding of costs and cost drivers. The system can yield insight into the efficiencies with which various activities are performed. E. The ABC system more accurately allocates costs because it identifies better cost drivers. F. The ABC system will help Wu determine which programs are the most costly to operate. This will be useful in making long-run decisions as to which programs to offer or emphasize. Requirement 2. What factors, other than cost, do you think Lower Valley Medical Associates should consider in allocating resources to its departments? (Select all that apply.) Requirement 2. What factors, other than cost, do you think Lower Valley Medical Associates should consider in allocating resources to its departments? (Select all that apply.) A. The concern with using costs (per patient visit) as the rule to allocate resources to its departments is that it emphasizes "input" to the exclusion of "outputs" or effectiveness of the departments. B. Unlike many manufacturing companies, where the outputs are obvious because they are tangible and measurable, the outputs of service organizations are more difficult to measure. O c. Unlike many manufacturing companies, where the outputs are not so obvious, the outputs of service organizations are easier to measure. D. Management's goal is to maximize costs per-patient visit in order to minimize the overall length of time patients need assistance through one or both of the departments. The problem, here, is measuring inputs