worksheet with two columns: Direct Cost and Indirect Cost. Place each of the following items in the appropriate column:

• Managed care marketing expense
• Real estate taxes
• Liability insurance
• Clinic telephone expense
• Utilities (for the entire facility)
• Emergency room medical supplies

1. Compute the costs allocated to cost centers "Clerical Salaries," "Administrative Salaries," and "Computer Services" using the new allocation bases shown below. Use worksheet #1 that replicates the set up inTable 7-2. Total the new results.
2. The new allocation bases are:

• A = # Visits (Volume): PT = 9,600; OT = 4,000; ST = 2,400; Total = 16,000(16,000 3 $3.50 = $56,000)
• B = Proportion of Direct Costs: PT = 60%; OT = 25%; ST = 15%; Total = 100%(% 3 $55,000 total)
• C = # Computers in Service: PT = 10; OT 5 3; ST = 3; Total = 16 (16 3 $5,000 each = $80,000)