Managerial accouting

Classifying Costs as Fixed and Variable in a Service Organization Alva Community Hospital has ve laboratory technicians who are responsible for doing a series of standard blood tests. Each technician is paid a salary of $40,000. The lab facility represents a recent addition to the hospital and cost $325,000. It is expected to last 20 years. Equipment used for the testing cost $10,000 and has a life expectancy of 5 years. In addition to the salaries, facility, and equipment, Alva expects to spend $200,000 for chemicals, forms, power, and other supplies. This $200,000 is enough for 200,000 blood tests. Required: Assuming that the driver (measure of output) for each type of cost is the number of blood tests run, classify each cost as a variable cost, discretionary xed cost, or committed xed cost. Technician salaries Laboratory facility Variable cost Laboratory equipment Discretionary xed cost Chemicals and other supplies Committed fixed cost