(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

 

AdministraTve 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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Sep 21, 2023

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