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healthcare finance Introduction to accounting and financial management 6th edition chapter 7 problem 7.9

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healthcare finance Introduction to accounting and financial management 6th edition chapter 7 problem 7.9
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Answered Same Day Dec 25, 2021

Solution

David answered on Dec 25 2021
119 Votes
a) ABC involves allocation of overhead costs in accordance with the cost driver. The
allocation rate is computed below.
Allocation rate = Total cost of activity/(Total value of cost driver)
Allocation rates for check in = 100000/22000 = 4.545
Allocation rates for assessment = 250000/23 = 10,869.57
Allocation rates for diagnosis = 600000/30 = 20,000
Allocation rates for treatment = 1200000/10 =...
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