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Grand Haven is a senior living community that offers a full range of services including independent living, assisted living, and skilled nursing care. The assisted living division provides residential space, meals, and medical services (MS) to its residents. The current costing system adds the cost of all of these services (space, meals, and MS) and divides by total resident days to get a cost per resident day. Recognizing that MS tends to vary significantly among the residents, Grand Havens accountant recommended that an ABC system be designed to calculate more accurately the cost of MS provided to residents. She decided that residents should be classified into four categories (A, B, C, D) based on the level of services received, with group A representing the lowest level of service and D representing the highest level of service. Two cost drivers being considered for measuring MS costs are number of assistance calls and number of assistant contacts. A contact is registered each time an assistance professional provides medical services or aid to a resident. The accountant has gathered the following data for the most recent annual period:

Resident	Annual	Annual	Number of Assistance
Classification	Resident Days	Assistance Hours	Contacts
A	18,000	9,100	27,000
B	10,000	22,500	31,000
C	5,500	23,000	27,500
D	3,000	18,400	24,000
	36,500	73,000	109,500

Other data
Total cost of medical services for the period	$4,927,500
Total cost of meals and residential space	$2,591,500

Required (round answers to the nearest dollar): a. Determine the total cost of a resident day using the current system. $Answer per day b. Determine the ABC cost of a resident day for each category of residents using assistance hours as the cost driver for medical services and resident days as the cost driver for meals and residential space. Note: Round your answers to two decimal places.

	Class A	Class B	Class C	Class D
ABC Cost of a resident day	Answer	Answer	Answer	Answer

c. Determine the ABC cost of a resident day for each category of residents using assistance contacts as the cost driver for medical services and resident days as the cost driver for meals and residential space. Note: Round your answers to two decimal places.

	Class A	Class B	Class C	Class D
ABC Cost of a resident day	Answer	Answer	Answer	Answer

d. Which cost drivers provide the more accurate measure of the cost per day for a Grand Haven resident? Answer

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