Activity Receive specimen Equipment setup Run test Record results Transmit results Total costs 6.7 Consider the following data for a clinical laboratory: Annual Costs $ 10,000 25,000 100,000 10,000 5,000 $150,000 Cost Driver Number of tests Number of minutes per test Number of minutes per test Number of minutes per test Number of minutes per test Chapter 6: Cost Allocation Test A 2,000 5 1 2 Activity Data Test B 1,500 1,000 5 10 5 10 2 Test C Test D 500 10 20 4 3 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. e. Verify that the total annual costs aggregated from individual test costs equal the total annual costs of the laboratory given in the table above. 217