## Project Description:

study table 6-1 in your text (page 54), example of rehab cost center direct and indirect cost totals, and table 6-2 (page 55), example of indirect costs allocated to rehab cost center, and review the chapter text describing how the indirect cost is allocated. this task will change the allocation bases input for a) number of visits (volume), b) proportion of direct costs, and c) number of computers in service.

required

compute the costs allocated to cost centers “clerical salaries”, “administrative salaries”; and “computer services” using the new allocation bases shown below. use worksheet #1 that replicates the set up in table 6-2. total the new results.

the new allocation bases are:

a= # visits (volume): pt=9,600/ot=4,000/st=2,400/total=16,000(16,000 x \$3.50=\$56,000)

b= proportion of direct costs: pt=60%/ot=25%/st=15%/total =100%(%x\$55,000)

c= #computers in service: pt=10/ot=3/st=3/total = 16 (16x\$5,000 each = \$80,000).

using worksheet #2 that replicates the set up in table 6-1, enter the new direct cost and the new totals for indirect costs resulting from your work. total the new results.
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