A B C D E F G H L GHA 4 TEMPLATE This assignment is designed to help you learn how to determine total costs by combining direct and indirect costs for a particular department. In this GHA, you will be determining the total costs for three departments: (1) Physical Therapy (2) Occupational Therapy and (3) Speech Therapy. To determine the total costs, you will need to add the direct costs to the indirect costs using the template provided below. Please use the example provided in the assignment description if you find that you need some support understanding the required calculations. DIRECT COSTS The direct costs for each department are easily identifiable, because they are the costs that are directly attributable to the department. The direct costs are as follows: Physical Therapy (PT) 410,000 Occupational Therapy (OT) 190,000 Speech Therapy (ST) 120,000 Total Direct Costs 720,000 INDIRECT COSTS The indirect costs will need to be allocated to Physical Therapy (PT), Occupational Therapy (OT), and Speech Therapy (ST). The indirect costs in this scenario have been identified as: (1) Clerical Salaries, (2) Administrative Salaries, and (3) Computer Services. The total indirect costs that need to be allocated to PT, OT, and ST are as follows: Clerical Salaries 56,000 Administrative Salaries 55,000 Computer Services 80,000 Total Indirect Costs 191,000 GHA 4 Total Indirect Costs 191,000 Each type of indirect cost will need to be allocated to each department based on an allocation basis that is appropriate for the particu Clerical Salaries will be allocated based on Visit Volume. Administrative Salaries will be allocated based on the Proportion of Direct Costs Computer Services will be allocated based on the Number of Computers in Service. Visit Volume Computers in Service 10 3 Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Total 9,600 4,000 2,400 16,000 3 16 Step 1: Set-up a Table of Direct and Indirect Costs Direct Cost Indirect Cost Total Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Totals Step 2: Determine the indirect costs that should be allocated from Clerical Salaries, Administrative Salaries, and Computer Services to PT, O Clerical Salaries The total indirect costs for Clerical Salaries is Clerical Salaries will be allocated based on Visit Volume. The Visit Volume for PT, OT, and ST are as follows: Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Total Visit Volume Based on this Visit Volume, the percentage of Visit Volume by department is as follows: Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Total Use the percentage of Visit Volumes to determine the allocation of the Indirect Costs for Clerical Salaries: Total indirect costs for Clerical Salaries: Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Total Indirect Costs CHOA Administrative Salaries The total indirect costs for Administrative Salaries is Administrative Salaries will be allocated based on the proportion (%) of direct costs. The Direct Costs for PT, OT, and ST are as follows: Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Total Visit Volume The proportion of these direct costs is as follows: Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Total Use the proportion of the direct costs to determine the allocation of the Indirect Costs for Administrative Salaries: Total indirect costs for Administrative Salaries: Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Total Indirect Costs Computer Services The total indirect costs for Computer Services is Computer Services will be allocated based on the number of computers in service. The number of computers in service for PT, OT, and ST are as follows: Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Total Visit Volume The proportion of computers in service is as follows: Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Total Use the proportion of the numbers of computers in service to determine the allocation of the Indirect Costs for Comput Total indirect costs for Computer Services: Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Total Indirect Costs D1 A B C D E F G H 1 U Step 3: Determine to total indirect costs for PT, OT and ST. Based on your calculations in Step 2, you can create a table to determine the total indirect costs for PT, OT, and ST: Administrative Salaries Computer Services TOTAL INDIRECT COSTS Clerical Salaries Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Total Indirect Costs Step 4: Add the direct costs by department from Step 1 to the total indirect costs by department from Step 3 to get your total (From Step 1) (From Step 3) Direct Cost Indirect Cost Total Costs Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Total