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Please help me solve this step by step as shown. Clipboard Font Alignment Number LM ART I: SAMPLE SCENARIO AND CALCULATIONS CT COSTS direct costs
Please help me solve this step by step as shown.
Clipboard Font Alignment Number LM ART I: SAMPLE SCENARIO AND CALCULATIONS CT COSTS direct costs for each department are easily identifiable, because they are the costs that are directly attributable to the department The direct costs are as follows Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Total Direct Costs 410,000 190,000 120,000 720,000 INDIRECT COSTS The indirect costs will need to be allocated to Physical Therapy (PT), Occupational Therapy (OT), and Speech Therapy (ST). The indirect costs in this scenario have been identified as: (1) Clerical Salaries, (2) Administrative Salaries, and (3) Computer Services. The total indirect costs that need to be allocated to PT, OT, and ST are as follows: Clerical Salaries Administrative Salaries Computer Services Total Indirect Costs 60,000 50,000 75,000 185,000 Each type of indirect cost will need to be allocated to each department based on an allocation basis that is appropriate for the particular type of cos Clerical Salaries will be allocated based on Visit Volume. The idea being that the more patients the department sees, the more Administrative Salaries will be allocated based on the Proportion of Direct Costs. The idea being that the higher the overall direct costs Computer Services will be allocated based on the Number of Computers in Service. The idea being that the more computers the departm clerical work that will be required. the more the department will require administrative oversight. has, the more computer support it will need. Now that you understand the facts, here is an explanation of how to approach assessing the direct and indirect costs for each department. Sheet1 Sheet2 Sheet3 Step by Step Solution
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