A physicianrsquos office provides three types of exams


A physician’s office provides three types of exams: Brief, Intermediate, and Extended. Total annual costs for the office are $400,000. Hourly labor rates for the physician, nursing staff, and administrative staff are $100, $25, and $15, respectively. Additional data are as follows: Labor (in minutes) Average Supply Cost Physician Nursing Administration & Billing Patient Visits per Year Brief $1 10 15 30 3600 Intermediate $2 27 15 30 1800 Extended $5 40 15 30 600 The physician practice allocates indirect costs based on relative weights as determined by the relative amount of time spent by a physician on each type of exam. Using a weight of 1.0 for an Intermediate exam, what is the weight for a Brief exam?

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Operation Management: A physicianrsquos office provides three types of exams
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