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 | |
