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Your wellness clinic wants to develop a product cost for the following activities using labor expense and supply expense to assign direct cost and visit
Your wellness clinic wants to develop a product cost for the following activities using labor expense and supply expense to assign direct cost and visit minutes as a cost driver to assign indirect costs. Projected total costs for your wellness clinic are $600,000 ($300,000 direct and $300,000 indirect). Assign costs to each activity using the following information
Activity | Projected volumes | Labor expense ($) | Supply expense ($) | Visit minutes |
Evaluation | 4,000 | 30 | 10 | 60 |
Education | 3,000 | 50 | 20 | 40 |
Exercise | 2,000 | 0 | 00 | 90 |
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