Isidora’s Clinic Is Considering a Time-Driven Activity-Based Costing System -Refer to the Figure

Multiple Choice

Isidora’s Clinic is considering a time-driven activity-based costing system. Given the following data:
$\begin{array}{|l|l|l|l|l|}\hline \text { Resources } & & & \text { Activities } & \text { Time/Activity } \\\hline\text { Supervision } & \$ 60,000 & & \text { Treating patients } & 1.40 \mathrm{hr} . \\\hline \text { Supplies and uniforms } & \$ 80,000 & & \text { Providing hygienic care } & 1.00 \mathrm{hr} \\\hline \text { Salaries } & \$ 350,000 & & \text { Respond to requests } & 0.60 \mathrm{hr} \\\hline \text { Computer } & \$ 10,000 & & \text { Monitor patients } & 1.00 \mathrm{hr} \\\hline \text { Monitor } & \$ 25,000 & & &\\\hline \text { Total } & \$ 525,000 \\\hline\text { Total nursing hours } \\\text { (practical capacity) } & 15,000 \\\hline\end{array}$

-Refer to the figure.What is the capacity cost rate?

A) $4
B) $25
C) $35
D) $105