Question: Healthy Solutions, Inc., is considering a time-driven activity based costing system. The following data is given: Resources Activities Time per activity Supervision $ 93,000 Treating

Healthy Solutions, Inc., is considering a time-driven activity based costing system. The following data is given:

Resources

Activities

Time per activity

Supervision

$ 93,000

Treating patients

1.50 hr

Supplies and uniforms

125,000

Providing hygienic care

2.00 hr

Salaries

542,500

Responding to requests

1.10 hr

Computer

15,000

Monitoring patients

1.35 hr

Monitor

35,750

Total

$811,250

Total nursing hours (practical capacity)

25,250

What is the capacity cost rate? (Round the answer to two decimal places.)

a.

$3.60 per hour
b.

$32.13 per hour
c.

$22.5 per hour
d.

$94.5 per hour

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