Question

I have a table to fill out for a Healthcare Finance class and I'm really struggling with the TOTAL UNITS column of the first table and the other colums of the tables after that. Help?

	Activity	Annual Costs	Total Units1	Unit	Alloc Rate	Cost Driver	Test A	Test B	Test C	Test D
	Receive specimen	10,000	5000	Tests	2.00	No. Tests	2,000	1,500	1,000	500
	Equipment setup	25,000		Minutes	8.33	Minutes per test	5	5	10	10
	Run test	100,000		Minutes	2777.78	Mminutes per test	1	5	10	20
	Record results	10,000		Minutes	1000.00	Minutes per test	2	2	2	4
	Transmit results	5,000		Minutes	416.67	Minutes per test	3	3	3	3
	Total annual costs	150,000
1Determine total number of units per activity.
b. Calculate cost per test - allocation rate x units per test (20 points)
			Test	A	Test	B	Test	C	Test	D
	Activity	Alloc Rate	Units	Cost	Units	Cost	Units	Cost	Units	Cost
	Receive specimen		1		1		1		1
	Equipment setup		5		5		10		10
	Run test		1		5		10		20
	Record results		2		2		2		4
	Transmit results		3		3		3		3
		Total cost per test
c. Confirm accounting for Total annual cost. (16 points)
		Test	Total #	Cost per	Annual Cost
		A	2000
		B	1500
		C	1000
		D	500
				Total annual costs

Answer 1