Activity-Based Costing Self-Quiz Problem Your wellness clinic wants to develop a
ID: 2735022 • Letter: A
Question
Activity-Based Costing Self-Quiz Problem
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 $300,000 indirect). Assign costs to each activity using the following info. Can you explain step by step?
Activity
Projected Volumes
Labor Expense ($)
Supply ($)
Visit minutes
Evaluation
4,000
30
10
60
Education
3,000
50
20
40
Exercise
2,000
05
00
90
Activity
Projected Volumes
Labor Expense ($)
Supply ($)
Visit minutes
Evaluation
4,000
30
10
60
Education
3,000
50
20
40
Exercise
2,000
05
00
90
Explanation / Answer
Computation of product cost:
Activity Labor and supply expense($) Allocation of direct costs Visit minutes Allocation of indirect costs Evaluation 40 104,348 60 94,737 Education 70 182,609 40 63,158 Exercise 5 13,043 90 142,105 115 300,000 190 300,000Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.