Dear Tutor,

Could you please help me with the calculations below? Somehow I cannot get the correct answers.

Thanks a lot in advance!

Take the example of the healthcare industry: What are the costs of a knee surgery? We want to use time-driven activity-based costing to answer this question.

Activity	Duration of time per surgery (min)	Cost per minute ( / min)
Consultation and scheduling	30	6.00
Preparation of surgery	10	0.82
Sterilization	5	0.56
Operating doctor	45	6.00
Certified nurse anesthetist	60	1.15
Staff anesthesiologist	20	6.00

a) Please calculate the costs of using an operating doctor for a knee surgery.

b)Please calculate the total costs (in ) of a knee surgery under time-driven activity-based costing.

c)Please assume that the table shows the budgeted cost per minute. Now assume that the actual costs incurred for the activity "sterilization" are 600,000 per year and theoretical capacity is 25,000 hours. The practical capacity equals 80% of the theoretical capacity.

d)Please calculate the actual cost per minute.

e)Assume the actual cost per minute to be lower than the budgeted cost per minute. Please select the keyword which is most appropriate for this situation.

Group of answer choices

-Wrong allocation

-Underallocation

-Overallocation

-None of the above