Consider the following data for a clinical laboratory.Activity Annual Cost Cost

Wednesday July 27, 2022

Consider the following data for a clinical laboratory.Activity Annual Cost Cost Driver Test A Test B Test C Test DRecieve specimen $10000 Number of Test 2000 1500 1000 500Equipment Setup $25000 Num of min per test 5 5 10 10Run Test $100000 Num of min per test 1 5 10 20Record Results $10000 Num of min per test 2 2 2 4Transmit results $5000 Num of min per test 3 3 3 3Total Cost $150000A. Using ABC techniques determine the allocation rate for each activityB. Now using this allocation rate estimate the total cost of performing each test.C. Verify that the total annual cost aggregated from individual test cost eqial the total annual cost of the laboratory given in the table above.


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