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Step 2 : Determine the indirect costs that should be allocated from Clerical Salaries and Computer Services to PT , OT , and ST .

Step 2: Determine the indirect costs that should be allocated from Clerical Salaries and Computer Services to PT, OT, and ST.
Clerical Salaries
The total indirect costs for Clerical Salaries is:
Clerical Salaries will be allocated based on Visit Volume.
The Visit Volume for PT, OT, and ST are as follows:
Physical Therapy (PT)
Occupational Therapy (OT)
Speech Therapy (ST)
Total Visit Volume
Based on this Visit Volume, the percentage of Visit Volume by department is as follows:
Physical Therapy (PT)
Occupational Therapy (OT)
Speech Therapy (ST)
Total
Use the percentage of Visit Volumes to determine the allocation of the Indirect Costs for Clerical Salaries:
Total indirect costs for Clerical Salaries:
Physical Therapy (PT)
Occupational Therapy (OT)
Speech Therapy (ST)
Total Indirect Costs
Computer Services
The total indirect costs for Computer Services is:
Computer Services will be allocated based on the number of computers in service.
The number of computers in service for PT, OT, and ST are as follows:
Physical Therapy (PT)
Occupational Therapy (OT)
Speech Therapy (ST)
Total Visit Volume
The proportion of computers in service is as follows:
Physical Therapy (PT)
Occupational Therapy (OT)
Speech Therapy (ST)
Total
Use the proportion of the numbers of computers in service to determine the allocation of the Indirect Costs for Computer Services:
Total indirect costs for Computer Services:
Physical Therapy (PT)
Occupational Therapy (OT)
Speech Therapy (ST)
Total Indirect Costs Step 3: Determine to total indirect costs for PT, OT and ST.
Based on your calculations in Step 2, you can create a table to determine the total indirect costs for PT, OT, and ST:
TOTAL
Physical Therapy (PT)
Occupational Therapy (OT)
Speech Therapy (ST)
Total Indirect Costs
Step 4: Add the direct costs by department from Step 1 to the total indirect costs by department from Step 3 to get your total costs.
(From Step 1)(From Step 3)
Direct Cost Indirect Cost
Total Costs
Physical Therapy (PT)
Occupational Therapy (OT)
Speech Therapy (ST)
Totalset up a table of indirect and direct cost GHA 4 TEMPLATE
This assignment is designed to help you learn how to determine total costs by combining direct and indirect costs for a particular department.
In this GHA, you will be determining the total costs for three departments: (1) Physical Therapy (2) Occupational Therapy and (3) Speech Therapy.
To determine the total costs, you will need to add the direct costs to the indirect costs using the template provided below.
Please use the example provided in the assignment description if you find that you need some support understanding the required calculations.
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 and (2) Computer Services.
The total indirect costs that need to be allocated to PT, OT, and ST are as follows:
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 cost.
Clerical Salaries will be allocated based on Visit Volume.
Computer Services will be allocated based on the Number of Computers in Service.
Step 1: Set-up a Table of Direct and Indirect Costs
Physical Therapy (PT)
Occupational Therapy (OT)
Speech Therapy (ST)
Totals
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