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DBC $,$ TDABC, and ABC

The Bienestar Cardiology Clinic has two major activities: diagnostic and treatment. The two activities use four resources: nursing, medical technicians, cardiologists, and equipment. Detailed interviews have provided the following work distribution matrix shown below.

Resources

$\backslash$table$[[$Activity$,$Nursing,Technicians,Cardiologists,Equipment,$\backslash$table$[[$Activity$],[$Time$]]],[\backslash$table$[[$Diagnosing$],[$patients$]],0\mathrm{.}70,0\mathrm{.}80,\backslash$table$[[0\mathrm{.}40]],0\mathrm{.}60,12,000],[\backslash$table$[[$Treating$],[$patients$]],0\mathrm{.}30,0\mathrm{.}20,0\mathrm{.}60,0\mathrm{.}40,8,000],[\backslash$table$[[$Total time$],[($hrs$.)]],4,000,4,000,6,000,6,000,20,000],[$cost$,$$$80,000,$$$80,000,$$$320,000,$$$320,000,]]$

The total time estimated corresponds to practical capacity $($interviewers adjusted the total time to about $80$ percent of the available time$).$ The equipment time is measured in machine hours. Thus, the total time $($at practical capacity$)$ in the system is $20,000$ hours. In considering the implementation of a TDABC model, the following unit times and transaction information are also provided:

$\backslash$table$[[,\backslash$table$[[$Unit$],[$Time$]],$Driver,$\backslash$table$[[$Expected$],[$Activity$],[$Driver Quantity$]]],[\backslash$table$[[$Diagnosing$],[$patients$]],3$ hrs$,$No$.$ of patients,$4,000],[$Treating patients,$0\mathrm{.}8$ hr$.,\backslash$table$[[$No$.$ of$],[$treatments$]],10,000]]$

The clinic has identified three types of patients: those with no heart disease, those with mild heart disease, and those with severe heart disease. The following additional data are provided:

$\backslash$table$[[,\backslash$table$[[$Diagnosing$],[$Patients$]],\backslash$table$[[$Treating$],[$Patients$]],\backslash$table$[[$Average Time Spent Servicing$],[$Each Patient Type $($Cycle$]]],[\backslash$table$[[$Patient Type$]],2,000,0,3$ hrs$.],[\backslash$table$[[$Mild disease$]],1,500,5,000,5\mathrm{.}6$ hrs$.],[\backslash$table$[[$Severe$]],500,5,000,11\mathrm{.}0$ hrs$.],[$disease$,?,?,],[$Activity cost$,?,,]]$

Calculate the activity costs for diagnosing and treating patients. Using the activity costs calculated, calculate the unit cost of servicing each type of patient using traditional ABC.

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