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A report example provides within the cost classifications chapter illustrates a rehab cost center's allocation...

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Accounting

A report example provides within the cost classifications chapter illustrates a rehab cost center's allocation of indirect costs. The indirect cost of administrative salaries was allocated to three types of therapy according to the proportion of direct costs for each therapy type. Assume the total administrative salaries to be allocated amounts to $100,000: Futher, assume the proportion of direct costs is as follows: PT= 60%; OT =30%; ST= 10%. What is now the OT Administrative salaries indirect cost allocation?

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