3. Construct an activity-based budget based on the cost per output calculated in part 2 with a 3% inflation factor, the forecasted output below, and assuming non-productive time can be reduced to $300,000.

Forecasted (cost/output*1.03)

Surgery Quantity Budget Standard Budget

Lasik 860 ________ ________

Photorefractive keratectomy 510 ________ ________

Lens implants 530 ________ ________

Cataract surgery 270 ________ ________

Vitrectomy 255 ________ ________

Non-productive time $300,000

Total ________

Please show your calculations

part 1

Surgery	Price	% Time	Time in Hours	Total Cost	Quantity	Output	Cost/Output
Lasik	$800	30%	230	600,000.00	847	$677,600	0.89
Photorefractive keratectomy	$700	20%	154	400,000.00	491	$343,700	1.16
Lens implants	$1,000	25%	192	500,000.00	523	$523,000	0.96
Cataract surgery	$900	15%	115	300,000.00	264	$237,600	1.26
Vitrectomy	$1,200	10%	77	200,000.00	239	$286,800	0.70
						$2,068,700

part 2

Surgery	Minutes Per Case	Quanity	Total Minutes	% time taken	Total Cost	Price	Total Output	Cost/Output
Lasik	13	847	11011	23.89539931	477907.986	$800	$677,600	0.70529514
Photorefractive keratectomy	10	491	4910	10.65538194	213107.639	$700	$343,700	0.62003968
Lens implants	22	523	11506	24.96961806	499392.361	$1,000	$523,000	0.95486111
Cataract surgery	18	264	4752	10.3125	206250	$900	$237,600	0.86805556
Vitrectomy	26	239	6214	13.48524306	269704.861	$1,200	$286,800	0.94039352
Non-Productive Time			7,687	16.68185764	333637.153		0
Total		2364	46,080	100	$2,000,000		$2,068,700