(Solution) Allocation Basis: Indirect Cost to be Allocated Allocated To: Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Proof Total... > Snapessays.com

(Solution) Allocation Basis: Indirect Cost to be Allocated Allocated To: Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Proof Total...

I've attached the first part of the exercise, which I had no issue with.  The second part has me confused.  Below is the question, plus the answer someone else provided but I have no clue how the direct costs or totals were calculated. Using worksheet #2 that replicates the set up in Table 6–1, enter the new direct cost and the new totals for indirect costs resulting from your work. Total the new results.You are going to re-create Table 6-1. You will use the information from the indirect cost in 6-1. You will need this additional information to calculate the direct costs and grand totals Total cost for PT: \$566,600.00 OT: \$230,250.00 ST: \$144,150.00.Clerical Salaries

Computer Services

Allocaton Basis:

A

B

C

IndirecT CosT To be AllocaTed

\$56,000

\$55,000

\$80,000

AllocaTed ±o:

Physical ±herapy (P±)

33,600

33,000

50,000

Occupatonal ±herapy (O±)

14,000

13,750

15,000

Speech ±herapy (S±)

8,400

8,250

15,000

Proof ±oTal

\$56,000.00

\$55,000.00

\$80,000.00

Allocaton Key:

A = # VisiTs (Volume): P± = 9600/O± = 4000/S± = 2400/±oTal = 16000 (16,000 x \$3.50 = \$56,000)

B = Proporton of DirecT CosTs: P± = 60%/O± = 25%/S± = 15%/±oTal = 100% (% x \$55,000)

C = # CompuTers in Service: P± = 10/O± = 3/S± = 3/±oTal = 16 (16 x \$5,000 each = \$80,000)

Rehab CosT CenTers

Direct Cost

Indirect Cost

±otal

Physical ±herapy (P±)

\$410,000

\$116,600

\$526,600

Occupatonal ±herapy (O±)

190,000

42,750

232,750

Speech ±herapy (S±)

120,000

31,650

151,650

±oTal

\$720,000

\$191,000

\$911,000

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This question was answered on: Sep 21, 2023

Solution~00021147635794.zip (25.37 KB)

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Sep 21, 2023

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