a. Using ABC techniquest determine the allocation rate for each activity. b

a. Using ABC techniquest determine the allocation rate for each activity.

b. Now using this allocation estimate the total cost of performing each test.

c. Verify the total annual costs aggregated from individual test costs equal the total annual costs of the laboratory given the data
above.

activity annual costs cost
driver test a test b test c test
d

recieve specimen $10000 no. of tests 2000 1500 1000 500

set up equipment 25000 no. of mins. per test 5 5 10 10

reun test 100000 no. of mins. per test 1 5 10 20

record results 10000 no. of mins. per test 2 2 2 4

transmit results 5000 no. of mins. per test 3 3 3 3

total costs $150000