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1. STRAYER HSA 525 Week 3 Homework 2 Ex 6-1. Ex 6-2. Ex 7-1.
Ex 7-2 NEW
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Assignment Exercise 6-1: Allocating
Indirect Costs 1. Compute the costs allocated to cost
centers “Clerical Salaries,” “Administrative
Salaries," and “Computer Services" using the new
allocation bases shown below. Use worksheet #1
that replicates the set up in Table 6-2. Total the
new results.
The new allocation bases are:
Assignment Exercise 6-2: Responsibility
Centers Choose among the Case Study in Chapter
27, the clinic in MiniCase Study 2, or the Metropolis
Health System information as contained in its Case
Study and the Appendix that contains its financial
statements. Designate the responsibility centers
and the support centers for the organization
selected. Prepare a rationale for the structure you
have designed.
Assignment Exercise 7-1: Analyzing Mixed Costs
Initial Calculations
Assignment Exercise 7-2: Calculating the Contribution Margin

2. The Mental Health program for the Community Center has just
completed its fiscal year end. The program director determines
that his program has revenue for the year of $1,210,000. He
believes his variable expense amounts to $205,000 and he knows
his fixed expense amounts to $1,100,000.
1. Compute the contribution margin for the Community Center
Mental Health Program.
2. What does the result tell you about the program?