The Wellness Clinic Is Considering a Time-Driven Activity Based Costing

question 11

Multiple Choice

The Wellness Clinic is considering a time-driven activity based costing system. Given the following data: $$\begin{array} { | l | r | l | l | r | } \hline \text { Resources } & & & { \text { Activities } } & \text { time/activity } \\\hline \text { supervisi on } & \$ 60,000 & & \text { treating patients } & 1.40 \mathrm { hr } \\\hline \text { supplies and uniforms } & \$ 80,000 & & \text { providing hygienic care } & 1.00 \mathrm { hr } \\\hline \text { sal aries } & \$ 350,000 & & \text { responding to requests } & 0.60 \mathrm { hr } \\\hline \text { computer } & \$ 10,000 & & \text { monitoring patients } & 1.00 \mathrm { hr } \\\hline \text { monitor } & \$ 25,000 & & & \\\hline \text { Total } & \$ 525,000 & & & \\\hline \begin{array} { l } \text { Total nursing hours } \\\text { (practical capacity) }\end{array} & 15,000 & & & \\\hline\end{array}$$ What is the activity rate for responding to requests?

• A)$21
• B)$35
• C)$25
• D)$50

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