Suppose the Burlington Donor Clinic of Canadian Blood Services has identified an individual blood drive...
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Accounting
Suppose the Burlington Donor Clinic of Canadian Blood Services has identified an individual blood drive as its cost object. It has established the following cost pools in developing an activity-based costing system:
Non-medical personnel costs. Salaries and wages of the office staff who organize blood drives and keep donor records.
Medical personnel costs. Salaries and wages of doctors and nurses who staff a blood drive.
Medical supplies. Cost of needles, bandages, and containers for donated blood.
Non-medical supplies. Costs of refreshments for blood donors and recordkeeping supplies.
Blood drives typically require 5 to 7 beds for blood donors. Each donation requires one container (in the medical supplies cost pool), one needle, and one set of bandages. Canadian Blood Services normally receives donated space from a community organization (such as a university or company) for each blood drive. Non-medical personnel costs would be most appropriately allocated using:
a. Number of blood drives organized
b. Number of blood donors
c. Hours available for blood donations
d. Dollar value of blood donated
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