Question: Alva Community Hospital has five laboratory
Alva Community Hospital has five laboratory technicians who are responsible for doing a series of standard blood tests. Each technician is paid a salary of $30,000. The lab facility represents a recent addition to the hospital and cost $300,000. It is expected to last 20 years. Equipment used for the testing cost $10,000 and has a life expectancy of 5 years. In addition to the salaries, facility, and equipment, Alva expects to spend $200,000 for chemicals, forms, power, and other supplies. This $200,000 is enough for 200,000 blood tests.
Required:
Assuming that the driver (measure of output) for each type of cost is the number of blood tests run, classify the costs by completing the following table. Put an X in the appropriate box for variable cost, discretionary fixed cost, or committed fixed cost.
Transcribed Image Text:
Variable Discretionary Fixed Committed Fixed Cost Category Cost Cost Cost Technician salaries Laboratory facility Laboratory equipment Chemicals and other supplies
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