Alva Community Hospital has five laboratory technicians who are responsible for doing a series of standard...

50.1K

Verified Solution

Question

Accounting

Alva Community Hospital has five laboratory technicians who areresponsible for doing a series of standard blood tests. Eachtechnician is paid a salary of $30,000. The lab facility representsa recent addition to the hospital and cost $350,000. It is expectedto last 20 years. Equipment used for the testing cost $10,000 andhas a life expectancy of 5 years. In addition to the salaries,facility, and equipment, Alva expects to spend $200,000 forchemicals, forms, power, and other supplies. This $200,000 isenough for 200,000 blood tests.
Assuming that the driver (measure of output) for each type ofcost is the number of blood tests run, classify each cost as avariable cost, discretionary fixed cost, or committed fixedcost.
Technician salaries
Laboratory facility
Laboratory equipment
Chemicals and other supplies

Answer & Explanation Solved by verified expert

4.4 Ratings (576 Votes)

Solution Classification of Various costs Cost category Variable cost Discretionary fixed cost Committed fixed cost Technician salaries Yes 150000 30000 5 technicians Laboratory facility Yes 350000 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Technician salaries
Laboratory facility
Laboratory equipment
Chemicals and other supplies