6.7 help

6.7 Consider the following data for a clinical laboratory: Chapter 6: Cost Allocation 217 Activity Annual Costs Cost Driver Receive specimen $ 10,000 Number of tests Equipment setup 25,000 Number of minutes per test Run test 100,000 Number of minutes per test Record results 10,000 Number of minutes per test Transmit results 5,000 Number of minutes per test Total costs S150,000 Activity Data Test A Test B Test C Test D 2,000 1,500 1,000 500 5 5 10 10 5 10 20 2 2 2 3 3 3 3 1 4 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