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Unformatted text preview: 0,592 ÷2,500 $ 532.24 247,320 196,180 134,350 $2,697,070 3. Using the disaggregated activit y­based costing data, managers can see that the MRI actually costs substant ially more and x­rays and ultrasounds substant ially less than the tradit ional system indicated. In particular, the MRI activit y generates a lot of maintenance act ivit y and sanitat ion activit y. Managers should examine the use of these two activit ies to search for ways to reduce the activit y consumption and ult imately its cost. 5-33 5­33 (30 min.) Choosing cost drivers, activity­based costing, activity­based management. 1. Direct costs = Dance teacher salaries, Child care teacher salaries, Fitness instructor salaries Indirect costs = Supplies; Rent, maintenance, and utilit ies; Administration salaries; Marketing expenses 2. Indirect Cost Supplies Rent, maintenance, and utilit ies Administration salaries Marketing expenses Cost Driver Number of participants Square footage Number of participants Number of advertisements Budgeted Cost Driver Rate $21,984 ÷ 2,205 = $9.97 per participant $97,511÷ 11...
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