Worksheet 1 is example of rehab cost center direct and indirect cost totals, and worksheet 2 is
Question:
Worksheet 1 is example of rehab cost center direct and indirect cost totals, and worksheet 2 is example of indirect costs allocated to rehab cost center, 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.
Compute the costs allocated to cost centers ?clerical salaries?, ?administrative salaries?; and ?computer services? using the new allocation bases shown below.
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).
Enter the new direct cost and the new totals for indirect costs resulting from your work. total the new results.
Worksheet #1
Allocation Key:
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)
Worksheet #2
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin