Consider the following data for a primary care practice that provides two types of services, A and B:

		Activity Data per Service
Activity	Annual Costs (1)	Cost Driver	Service A	Service B	Total (2)	Allocation Rate (1) (2)
Check-in	$ 100,000	Volume	7,000	15,000	22,000	$ 4.55
Assessment	$ 250,000	Minutes	105,000	120,000	225,000
Diagnosis	$ 600,000	Minutes	20	10
Treatment	$ 1,200,000	Minutes	5	5
Check-out	$ 125,000	Volume	7,000	15,000
Billing	$ 250,000	No. of bills	3	1
Total	$ 2,525,000
Activity	Allocation	Svc A	Svc B	Total
Check-in	$ 4.55	$ 4.55
Assessment	$ -	$ -
Diagnosis
Treatment
Check-out
Billing
Total		$ 4.55
		$ 31,818.18		$ 31,818.18

Questions:

a. Using ABC techniques, determine the allocation rate for each activity.

b. Determine the costs per visit for each type of service.

c. Verify that the total annual costs aggregated from individual visit costs equal the total annual costs of the practice given in the table above.

PLEASE SHOW WORK FOR ALL QUESTIONS!