Question #1 This table is regarding the data gathered by ABC Physical Therapy. Using the info in the table, work out your solution inside the table in order to figure out the multiple-choice answers below the table:

ABC Physical Therapy
		Facility One	Facility Two
Facility Sqft		2000	3000
Facility Direct Costs		$ 50,000	$ 75,000
Admin Costs
Housekeeping			$ 30,000
Marketing			$ 100,000
Other Admin			$ 150,000
Total Admin			$ 280,000
Facility Revenue		$ 200,000	$ 250,000
Facility Total RVUs		24,000	31,250
Facility Encounters		2,400	3,500

1. For housekeeping costs, ABC Physical Therapy has determined that the facility square footage is the appropriate cost driver. What is the allocation rate of housekeeping?
   1. $5.00
   2. $6.00
   3. $4.25
   4. $15.00
2. If ABC uses the direct cost method and has determined that square footage is the cost driver for housekeeping costs and facility encounters is the cost driver for all other support costs, what is the total cost calculated to run facility one?
   1. $50,000
   2. $130,000
   3. $75,000
   4. $163,695
3. If the square footage of the administration building is 2,000 square feet, what is the total cost of running facility two if ABC elects to use the stepdown method of costing and facility encounters is the cost driver for all other support costs?
   1. $230,143
   2. $228,390
   3. $280,000
   4. $153,389
4. Assuming ABC uses the cost to charge ratio method based on revenue, what would be the average cost per visit for facility two?
   1. $230,556
   2. $65.87
   3. $39.08
   4. $44.44
5. Assuming ABC uses the RVU based cost method, what is the average cost per visit for facility one?
   1. $49.04
   2. $66.68
   3. $71.51
   4. $50.68

6- f ABC determines that facility one has $75,000 in fixed costs and a contribution margin of 56%, what is the breakeven point in encounters for facility one?