Requirement 1. a. Selecting cost-allocation bases that you beleve are the most appropriate for allocating indeect costs to departments, calculase the budgoted indirect cost rates for modical supples, rent and clinic maintenance. laboratory sorvices, and general overhead. Begin by completing the table below to isen:ty the most appropriato cost driver for each cost overhead is General overhead, including administrotivo staft, sq ftsquare foot) Big Cify Metical Asseciales operales a wak in medical clinie in Tempo, Arizona (1) (Clck the icon to addifional riformalions) Li has recenty beceme aware of actinty based covting as a mebod to redine costing systems Sew asks her accoumbert, Fric Wilson, bow she should abcly this lechnique. Wiscon etevins the following budgeted inlorenafon for 2020 . iClick the icon fo vire the buspat data Read the tequiresesnts: More info ajminislers wacones; schoor and work phyicss, and conducts workshopt ah Krystal u, the director of the cinc, is keen an detemining the coul of each ofparment. L comples the sollowing data describing employee allocation to indmidual programs! Data table General Requirement 1. b. Using an activity-based costing approach to cost analysis, calculate the budgeted cost of each department and the budgeled cost per patient visit of each department. Calculate the budgeled costs for the Urgent Caro department in this step, and then the budgeled costs for the Ling Welt dopartenent in the following step. (Complete all input fieids Enter a " O " for any zero balances. Round the cost Der patient visit amounts to the nearest cant, XX ) Requirement 1. C. What benefis can Big City Modical Associates obtain by implomenting the ABC system? (Soloct all that apply) A. By implementing the ABC system, U can gain a more detalled understanding of costs alid cost drivers. The system can yield insight into the effciencies weh which various activbies are performed. B. The ABC systecn chooses cost drivers for overhead costs that have a cause-and-effect relasionship between the cost divers and the costs C. The ABC system wit assist L in setting prices for the programs that more accurately reflect the costs of each program. D. Designing. planning, and implementing an ABC system is often less teme consuming. complex, and costly that dosigning, planning, and implementeng a simple conting syslem E. The ABC system more accurately allocates costs bocause it idemifies better cost divers. F. The ABC system wail holp Ui dotermine which programs are the most costy to operate. This wil be usetul in inaking long-run decisions as to which programs to offer or amphasize. Requirement 2. What factors, oetec than cout, do you think Big CAy Medical Associates should consider in alocating resources to As departments? (Belect aft inat apkeg) A. Unike mary manufacturing companies, where the outputs are obvious because they are tangible and measurable, the outputs of service organizations are more simcuat lo measure is measuring inputs c. The concem with using conts (per patient visi) as the nde to allocale cescurces to its departments is that it emphasizes "input" to the excusion of "outputa" or effectiveness of the depastmenti D. Untike mary manufacturing companies, where the outputs are not so otvious, the outputs of service organcratcons are navier is measiae
