Worksheet 1 requires you to use the information given to allocate indirect costs across three areas: Physical Therapy, Occupational Therapy and Speech Therapy.

Chapter 7 Cost Allocation Exercise Clerical Salaries Administrative Salaries Computer Services Total Indirect Cost Proportion of Direct Costs # Computers in Service Allocation Basis: Visit Volume $56,000 $55,000 $80,000 $191,000 9,600 4,000 2,400 16,000 60.0% 25.0% 15.0% Indirect Cost to be Allocated Allocated to: Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Proof Total $56,000 $55,000 $80,000 $191,000 Clerical Cost per Visit $ 3.50 16 Cost per Computer $ 5,000.00 Chapter 7 Cost Allocation Exercise Clerical Salaries Administrative Salaries Computer Services Total Indirect Cost Proportion of Direct Costs # Computers in Service Allocation Basis: Visit Volume $56,000 $55,000 $80,000 $191,000 9,600 4,000 2,400 16,000 60.0% 25.0% 15.0% Indirect Cost to be Allocated Allocated to: Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Proof Total $56,000 $55,000 $80,000 $191,000 Clerical Cost per Visit $ 3.50 16 Cost per Computer $ 5,000.00