QUESTION $4(19$ marks; $34\mathrm{.}2$ minutes$)$

$2$ Military Hospital runs two programs: drug addict rehabilitation and aftercare $($counselling and support of patients after release from a mental hospital$).$ The centre's budget for $2020$ is as follows:

$\backslash$table$[[$Professional salaries:,,$],[4$ Physician $$ R$150000,$R$600000,],[12$ Psychologists x R$75000,$R$900000,],[16$ Nurses $$ R$30000,$R$480000,],[$Medical supplies; Admin costs to manage patient,,R$660000],[$charts$,$ food and laundry,,$],[$Rent and clinic maintenance,R$126000,],[$Laboratory services,R$84000,],[$Total$,,$R$2850000]]$

Lt Col Clayton, the director of the ward, is keen on determining the exact budgeted costs of each program. Lt Col Clayton compiled the following data describing employee allocations to individual programs:

$\backslash$table$[[,$Drug,Aftercare,Total Employees$],[$Physicians$,4,0,4],[$Psychologists$,4,8,12],[$Nurses$,6,10,16]]$

Lt Col Clayton recently became aware of activity$-$based costing as a method to refine costing systems and is struggling to get it right. She was advised to collect this data:

$\backslash$table$[[,$Drug,Aftercare$],[m^2$ of space occupied by each program,$9000,12000],[$Patient years of service,$50,60],[$Number of laboratory tests,$1400,700]]$

You are detached to the centre and during you introductory meeting you mentioned that you studied Management Accounting at the Military Academy and she's excited that you can help her resolve this matter.

Required:

$4\mathrm{.}1$ Draw a table to indicate the activity drivers and calculate the activity rates.

$4\mathrm{.}2$ Use the ABC approach to calculate the budgeted costs of each program.

$(13)$