1- Use Excel to perform an Activity Based Costing analysis for each of the overhead line items detailed in Exhibit 3. Pool together common costs and identify a reasonable cost driver for each pool. (Hintthere are only two candidates in Exhibit 2)

2- Use Excel to perform an Activity Based Costing analysis for annual staff salaries detailed in Exhibit 4. These calculations will be time-based ABC calculations using the estimated time use detailed in Exhibit 5. (Hintuse the case narrative to calculate the total estimated minutes each staff member is available each period)

3- Why is a 20% markup to cover unexpected costs necessary given all the work you just did to calculate the costs of each procedure level?

EXHIBIT 1: MATERNITY WARD COMPETITOR INFORMATION Note: * Not a bundled price. Source: Company documents. EXHIBIT 2: SELECTED HOSPITAL INFORMATION EXHIBIT 3: TOTAL ANNUAL MATERNITY WARD OVERHEAD (IN R) Source: Company documents. EXHIBIT 4: ANNUAL SALARIES FOR MATERNITY WARD STAFF BY POSITION EXHIBIT 5: BREAKDOWN OF MATERNITY STAFF TIME PER DELIVERY (MINUTES) EXHIBIT 1: MATERNITY WARD COMPETITOR INFORMATION Note: * Not a bundled price. Source: Company documents. EXHIBIT 2: SELECTED HOSPITAL INFORMATION EXHIBIT 3: TOTAL ANNUAL MATERNITY WARD OVERHEAD (IN R) Source: Company documents. EXHIBIT 4: ANNUAL SALARIES FOR MATERNITY WARD STAFF BY POSITION EXHIBIT 5: BREAKDOWN OF MATERNITY STAFF TIME PER DELIVERY (MINUTES)