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13. Traditional and activity-based costing. Use the information in Exhibit 12.13 to answer these questions. a. What is the per unit cost of an initial, regular, and intensive visit using the conventional and ABC approaches? b. What is the total cost of initial, regular, and intensive visits using the conventional and ABC approaches? 576 CHAPTER 12 PROVIDER COST-FINDING METHODS EXHIBIT 12.13 DATA FOR TRADITIONAL AND ABC COST ALLOCATION, FOD PROBLEM 13 Total Cost by Visit Type Basic Data Initial (Glven) Regular (Given) Intensive (Glven) Total R ( A Basic data and calculation of unit costs using a conventional approach 6,000 $30,000 $90,000 24,000 $25,000 $90,000 7,600 $45,000 $270,000 1 Number of visits 2 Direct materials (etc.) 3 Direct labor 4 Estimated overhead (total is a given) 5 Cost per visit: conventional method O S90,000 37,600 $100,000 $450,000 $200,000 (1) Basic data: annual projections of overhead costs by activity Cost Driver Information Cost (Given) Driver (Given) Units (Given) Activity 6 Intake 7 Medical records 8 Billing 9 Other 10 Total $32,500 $32,500 $55,000 $80,000 $200,000 New visits Time spent Time spent Visits 3,150 new visits 2,090 hours 5,080 hours 37,600 visits Additional basic data (2) Basic data: actual annual operating results of cost drivers to be used to assign ABC overhead cost Visit Type N Initial (Given) Regular (Given) Intensive (Given) Total (M+N+O) 800 3.150 11 New visits 12 Medical records 13 Billing 14 Other 2,090 2,200 500 3,040 6,000 540 916 24,000 150 1,050 1,124 7,600 5.080 37,600

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