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A report example provided within the Cost Classifications chapter illustrated a rehab cost centers allocation of indirect costs The indirect cost administrative salaries was allocated to three

A report example provided within the Cost Classifications chapter illustrated a rehab cost center’s allocation of indirect costs. The indirect cost “administrative salaries” was allocated to three types of therapy according to the proportion of direct costs for each therapy type. Assume the total administrative salaries to be allocated amounts to $100,000. Further assume the proportion of direct costs is as follows: PT = 60%; OT=30%; ST=10%. What is now the OT administrative salaries indirect cost allocation?

A. $60,000

B. $30,000

C. $13,000

D. None of the above

 

Apr 29 2020 View more View Less

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