question 7.7

on cach examination, how should the examinations be priced? 7.7 Consider the following data for a clinical laboratory: Activity Data Annual Test A Test B Test C Test D Cost Driver Activity Costs 10,000 Number of tests 2,000 1,500 1,000 500 Receive specimen 5 10 10 Number of minutes per test 25,000 Set up equipment 10 20 5 100,000 Number of minutes per test 10,000 Number of minutes per test 1 Run test 2 4 2 2 Record results 3 3 3 5,000 Number of minutes per test Transmit results $150,000 Total costs a. Using ABC techniques, determine the allocation rate for each activity b. Now, using this allocation rate, estimate the total cost of performing each test. c. Verify that the total annual costs aggregated from individual test costs equal the total annual costs of the laboratory given in the table above. Prescrintion