Consider the following data for a clinical laboratory:

a. Using ABC techniques, determine the allocation rate for each activity.

b. Now, using this allocation rate, estimate the total cost of performing each test.

c. Verify that the total annual costs aggregated from individual test costs equal the total annual costs of the laboratory given in the table above.

Activity Data Activity Annual Costs Receive specimen $ 10,000 Equipment set up 25,000 Cost Driver Number of tests Number of minutes per test Test A Test B Test C Test D 2,000 1,500 1,000 500 5 10 5 16 10 10 Run test 100,000 Record results 10,000 Number of minutes per test Number of minutes per test 1 5 10 10 20 2 2 Transmit results 5,000 Number of minutes per test 3 3 23 4 3 Total costs $150,000