Finance Group Project (Word)

Manji

Gadubhai

usha

Comprehensive Insurance Company has three operating departments: claims processing, administration, and sales. These three operating departments are supported by two service departments: information technology and accounting. The support provided by information technology and accounting to the other departments is shown below. Operating Departments Sales Total costs Information technology Accounting The total costs incurred in the five departments are: Information technology Accounting Claims processing Administration a. Direct Method b. Service Departments Step Method (Info Tech First) Step Method (Accounting First) Information Technology 10% c. Reciprocal Method Accounting 20% $ 579,000 1,580,000 270,000 551,000 600,000 $ 3,580,000 Required: Determine the total costs in each of the three operating departments, after departmental allocations, using (a) the direct method, (b) the step method (first for information technology going first in the allocation and then for accounting going…

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Compton Information Services, Inc., has two service departments: human resources and billing. Compton's operating departments, organized according to the special industry each department serves, are health care, retail, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows. Health Legal Services Human Resources Billing Care Retail Number of employees 10 20 80 60 40 Annual cost* $720,000 $1,428,000 $6,000,000 $9,000,000 $4,800,000 $6,200,000 $2,800,000 $4,800,000 Annual revenue *This is the operating cost before allocating service department costs. Required a. Allocate service department costs to operating departments, assuming that Compton adopts the step method. The company uses the number of employees as the base for allocating human resources department costs and department annual revenue as the base for allocating…

Kolinski Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, Telecommunications and Administration, and two operating departments, Surgery and Recovery. Service Departments Operating Department Tele communications Administration Surgery Recovery $ 26,344 $ 27,472 $ 282,750 $ 599,690 Departmental costs Telecommunications ports Employees 31 14 40 34 30 11 74 27 Telecommunications Department costs are allocated on the basis of the number of telecommunications ports in departments and Administration Department costs are allocated on the basis of employees. The total Surgery Department cost after service department allocations is closest to: Multiple Choice $317,118 $314,853 $310,244 $305,921

es Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two product lines are served by three operating departments, which are necessary for providing the two types of products: claims processing, administration, and sales. These three operating departments are supported by two departments: information technology and operations. The support provided by information technology and operations to the other departments is shown below. Operating Departments Information technology Operations The total costs incurred in the five departments are: Information technology Operations Claims processing Administration Sales C. Total costs a. Direct Method b. Support Departments Information Technology Operations 20% Step Method (Info Tech First) Step Method (Operations First) Reciprocal Method 10% $ 577,000 1,530,000 350,000 627,000 550,000 $ 3,634,000 Required: Determine the total costs in each of the three operating departments, after departmental…

Compton Information Services, Inc., has two service departments: human resources and billing. Compton's operating departments, organized according to the special industry each department serves, are health care, retail, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows. Human Health Legal Resources Billing Care Retail Services Number of employees 10 20 80 60 40 Annual cost* $4,800,000 $6,200,000 $720,000 $1,428,000 $6,000,000 $9,000,000 $2,800,000 $4,800,000 Annual revenue *This is the operating cost before allocating service department costs. Required a. Allocate service department costs to operating departments, assuming that Compton adopts the step method. The company uses the number of employees as the base for allocating human resources department costs and department annual revenue as the base for allocating…

Compton Information Services, Inc., has two service departments: human resources and billing. Compton's operating departmen organized according to the special industry each department serves, are health care, retail, and legal services. The billing depart supports only the three operating departments, but the human resources department supports all operating departments and th billing department. Other relevant information follows. Number of employees Annual cost* Annual revenue Req A1 Human Resources 10 $720,000 Department Req A2 Health Care Retail Legal Services Total Complete this question by entering your answers in the tabs below. Req B1 Allocation Rate *This is the operating cost before allocating service department costs. Required a. Allocate service department costs to operating departments, assuming that Compton adopts the step method. The company the number of employees as the base for allocating human resources department costs and department annual revenue as th base for…

Compton Information Services, Inc., has two service departments: human resources and billing. Compton's operating departments, organized according to the special industry each department serves, are health care, retail, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows. Health Legal Services Human Resources Billing Care Retail Number of employees Annual cost* 10 20 80 60 40 $6,000,000 $9,000,000 $720,000 $1,428,000 $4,800,000 $6,200,000 $2,800,000 $4,800,000 Annual revenue *This is the operating cost before allocating service department costs. Required a. Allocate service department costs to operating departments, assuming that Compton adopts the step method. The company uses the number of employees as the base for allocating human resources department costs and department annual revenue as the base for allocating…

Delaware Medical Center operates a general hospital. The medical center also rents space and beds to separately owned entities rendering specialized services, such as Pediatrics and Psychiatric Care. Delaware charges each separate entity for common services, such as patients' meals and laundry, and for administrative services, such as billings and collections. Space and bed rentals are fixed charges for the year, based on bed capacity rented to each entity. Delaware Medical Center charged the following costs to Pediatrics for the year ended June 30, 20x1: Dietary Janitorial Laundry Laboratory Pharmacy Repairs and maintenance General and administrative Rent Billings and collections. Total Annual Patient Days Up to 22,000 22,001 to 26,000 26,001 to 29, 200 Aides 20 25 31 Patient Days (variable) $ 580,000 270,000 440,000 320,000 Nurses 10 14 16 220,000 $1,830,000 During the year ended June 30, 20x1, Pediatrics charged each patient an average of $300 per day, had a capacity of 50 beds, and…

Delaware Medical Center operates a general hospital. The medical center also rents space and beds to separately owned entities rendering specialized services, such as Pediatrics and Psychiatric Care. Delaware charges each separate entity for common services, such as patients’ meals and laundry, and for administrative services, such as billings and collections. Space and bed rentals are fixed charges for the year, based on bed capacity rented to each entity. Delaware Medical Center charged the following costs to Pediatrics for the year ended June 30, 20x1:    Patient Days (variable) Bed Capacity (fixed) Dietary   $ 540,000       —   Janitorial     —     $ 71,000   Laundry     240,000       —   Laboratory     400,000       —   Pharmacy     320,000       —   Repairs and maintenance     —       33,000   General and administrative     —       1,320,000   Rent     —       1,570,000   Billings and collections     230,000       —   Total   $ 1,730,000     $ 2,994,000…

Parktown Medical Center, Inc.. is a small health care provider owned by a publicly heldcorporation. It employs 7 salaried physicians, I0 nurses, 3 support stafl, and 3 clericalworkers. The clerical workers perform such tasks as reception, correspondence, cashreceipIs,billing, and appointment scheduling. All are adequately bonded. Most patients pay for services rendered by cash or check on the day of their visit.Sometimes.however, the physician who is to performservices apprcredit based on an interview. When credit is approved, the physician files a memo vone of the clerks to set up the receivable using data the physician generates.The servicing physician prepares a charge sup that 1s given to one or the clerKs IorDicing and preparation of the patient S bill. At the end of the dav.one of the clerks usesthe bills to preparea revenue summarv and. in cases of credit sales. to update thecounts receivable subsidiary ledger.The frontoffice clerks receive cash and checksdirectly from patients…

Etobicoke Specialty Clinic (ESC) has two patient services departments: Medicine and Surgery. The patient services departments are supported by the Housekeeping, Financial Services, and Administration departments. The Finance Section of ESC has compiled the following information:      Department  Direct Costs  Square Feet  #of Employees  Housekeeping  $200,000  3,000  500  Administration  $400,000  5,000  250  Financial Services  $300,000  2,000  100  Medicine  $1,000,000  53,000  2,600  Surgery  $1,500,000  40,000  2,300   The ESC has determined that the cost driver for the Housekeeping Department is square feet and that the cost driver for Administration and Financial Services is the number of employees.    using the step-down method of cost allocation, Calculate the allocation of the Administration department’s costs to the Financial Services, Medicine, and Surgery departments. Assume Housekeeping costs are allocated…

Technology (IT), and two operating departments, Family Medicine and Pediatrics. Data concerning those departments follow: Service Departments Operating Department Family Information Personnel Technology $ 45,995 Medicine Pediatrics $ 86,184 $ 608,130 $ 316,290 Departmental costs Employees 18 26 128 188 Personnel costs 19 26 125 156 Personnel costs are allocated first on the basis of employees and Information Technology costs are allocated second on the basis of Personnel costs. The total Pediatrics Department cost after allocations is closest to: Multiple Choice $345,462 $393,099 $392,838 $383,307

Delaware Medical Center operates a general hospital. The medical center also rents space and beds to separately owned entities rendering specialized services, such as Pediatrics and Psychiatric Care. Dela-ware  charges  each  separate  entity  for  common  services,  such  as  patients’  meals  and  laundry,  and  for  administrative services, such as billings and collections. Space and bed rentals are fixed charges for the year, based on bed capacity rented to each entity. Delaware Medical Center charged the following costs to Pediatrics for the year ended June 30, 20x1"                                                                                     Patient Days                  Bed Capacity Dietary ....................................................................... $600,000                           — Janitorial .......................................................................—                                 $70,000 Laundry…

Parktown Medical Center, Ine., is a small bealch care provider owned by a publicly held corporation. It employs 7 salaried physicians, 10 nurses, 3 support staff, and 3 clerical workers. The clerical workers perform such tasks as reception, correspondence, cash receipts, billing, and appointment scheduling. All are adequately bonded. * Life-long Icaring opportumstro see p. asl in pretace. PART I ACCOUNTING INFORMATION SYSTEMS APPLICATIONS Most patients pay for services rendered by cash or check on the day of their visit. Sometimes, however, the physician who is to perform the respective services approves credit based on an interview. When credit is approved, the physician files a memo with one of the clerks to set up the receivable using data the physician gencrates, The servicing physician prepares a charge slip that is given to one of the clerks for pricing and preparation of the patient's bill. At the end of the day, one of the clerks uses the hills to prepare a revenue summary and,…

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A hospital has three revenue-controlling accounts: Patient Service Revenues, Other Operating Revenues, and Nonoperating Revenues.1. State in general terms the type of revenues found in each controlling account.2. Indicate into which of the three controlling accounts each of the following would be placed by using the symbols PS for Patient Service Revenues, OO for Other Operating Revenues, N for Nonoperating Revenues, and N/A if not a revenue item:a. Tuition for entry to the nursing school.b. An unrestricted gift of cash.c. General nursing fees charged to patients.d. Charges for physicians’ care.e. A restricted gift used for research on genes.f. Dividends from the hospital’s investments.g. Revenues from gift shop sales.h. Patient room and board charges.i. Proceeds from sales of cafeteria meals.j. Recovery room fees.k. Contributions for plant replacement and expansion.

A Community Hospital has two (2) service departments: Maintenance and Food Services. The hospital has three (3) patient care units, namely: General Medicine, OB, and Surgery.   Additional information are as follows:   Amount of cost to be allocated:   Maintenance P 8,000,000 Food Services P 3,000,000   Allocation method: Maintenance Costs are allocated based on square foot assigned to the Food Service Costs are allocated based on number of meals served to the   EXPECTED UTILIZATION RATES   SQ. FT. Meals Served Food Services 10,000 30,000 Maintenance 10,000 10,000 Surgery 20,000 40,000 OB 30,000 30,000 General Medicine 30,000 90,000 TOTAL 100,000 200,000   Using the information, allocate the costs of the two (2) service departments with the three (3) patient care units using: Direct Method, Step Method – Maintenance First, Step Method – Food Services First, and Reciprocal Method.

Kolinski Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, Telecommunications and Administration, and two operating departments, Surgery and Recovery. Departmental costs Telecommunications ports Employees Multiple Choice O$317.118 $314,853 $310,244 Service Departments Tele communications $ 26,344 $305,921 31 30 Telecommunications Department costs are allocated on the basis of the number of telecommunications ports in departments and Administration Department costs are allocated on the basis of employees. The total Surgery Department cost after service department allocations is closest to: Administration $ 27,472 14 11 Operating Department Surgery Recovery $ 282,750 $ 599,690 40 74 34 27

The Dinkle and Frizell Dental Clinic provides both preventive and orthodontic dental services. The two owners, Reese Dinkle and Anita Frizell, operate the clinic as two separate investment centers: Preventive Services and Orthodontic Services. Each of them is in charge of one of the centers: Reese for Preventive Services and Anita for Orthodontic Services. Each month, they prepare an income statement for the two centers to evaluate performance and make decisions about how to improve the operational efficiency and profitability of the clinic. Recently, they have been concerned about the profitability of the Preventive Services operations. For several months, it has been reporting a loss. The responsibility report for the month of May 2020 is shown below. Service revenue Variable costs: Filling materials Novocain Supplies Dental assistant wages Utilities Total variable costs Fixed costs: Allocated portion of receptionist's salary Dentist salary Equipment depreciation Allocated portion of…

Prepare journal entries to record the following transactions of a nonprofit hospital, with expense transactionscategorized by function:1. The hospital billed its uninsured patients for $300,000. Based on historical experience, it expects tocollect 45 percent of that amount over time.2. Nurses and doctors employed by the hospital were paid their salaries, $120,000.3. The chief administrative officer was paid her salary of $12,000.4. The hospital paid its utility bill, $6,000.5. Depreciation on the equipment was $40,800.6. Several adults donated their time (worth $6,000) selling merchandise in the hospital gift shop.7. The hospital billed Medicare $120,000 for services provided at its established rates. The prospectivebilling arrangement gives Medicare a 40 percent discount from these rates.8. A contribution without donor restrictions of $4,800 was received. If no adjustment is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields.

ABC, health care. Crosstown Health Center runs two programs: drug addict rehabilitation and aftercare (counseling and support of patients after release from a mental hospital). The center’s budget for 2017 follows.

MedServices Inc. is divided into two operating departments: Laboratory and Tissue Pathology.The company allocates delivery and accounting costs to each operating department. Deliverycosts include the costs of a fleet of vans and drivers that drive throughout the state each day toclinics and doctors’ offices to pick up samples and deliver them to the centrally located laboratory and tissue pathology offices. Delivery costs are allocated on the basis of number of samples. Accounting costs are allocated on the basis of the number of transactions processed. Noeffort is made to separate fixed and variable costs; however, only budgeted costs are allocated.Allocations for the coming year are based on the following data: Required:1. Assign the support department costs by using the direct method. (Note: Round allocationratios to four decimal places.)2. Assign the support department costs by using the sequential method, allocatingaccounting costs first. (Note: Round allocation ratios to four…

VIP-MD is a health maintenance organization (HMO) located in North Carolina. Unlike the traditional fee-for-service model that determines the payment according to the actual services used or costs incurred, VIP-MD receives a fixed, prepaid amount from subscribers. The per member, per month rate (PMPM) is determined by estimating the health care cost per enrollee within a geographic location. The average health care coverage in North Carolina costs $376 per month, which is the same amount irrespective of the subscriber’s age. Because individuals are demanding quality care at reasonable rates, VIP-MD must contain its costs to remain competitive. A major competitor, National Physicians, entered the North Carolina market early in the current year with a monthly premium of $333. VIP-MD wants to maintain its current market penetration and hopes to increase its enrollees in the current year. The latest data on the number of enrollees and the associated costs follow:   Age Enrollment in…

The Bramble Dental Clinic provides both preventive and orthodontic dental services. The two owners, Reese Dinkle and Anita Frizell, operate the clinic as two separate investment centers: Preventive Services and Orthodontic Services. Each of them is in charge of one of the centers: Reese for Preventive Services and Anita for Orthodontic Services. Each month, they prepare an income statement for the two centers to evaluate performance and make decisions about how to improve the operational efficiency and profitability of the clinic. Recently, they have been concerned about the profitability of the Preventive Services operations. For several months, it has been reporting a loss. The responsibility report for the month of May 2020 is shown below.     Actual   Differencefrom Budget Service revenue   $39,220     $1,300 Favorable Variable costs:                 Filling materials   4,950     130 Unfavorable     Novocain   4,120     100 Unfavorable     Supplies   1,900…

The California Community Hospital has two service departments, Cafeteria and Housekeeping, and two operating departments Surgery and Outpatient. The hospital uses the direct method to allocate service department costs to operating departments. It allocates Cafeteria costs based on the number of employees. Outpatient $360,000 45,000 Cafeteria Housekeeping $10,000 15,000 Surgery $140,000 15,000 Total Departmental costs before allocation Number of employees $40,000 20,000 $550,000 Knowledge Check 01 How much Cafeteria cost should be allocated to the Surgery department? $6,316 $8,000 $30,000 O $10,000

Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors-home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance. Program administrators' salaries. General administrative overhead* Total fixed expenses Net operating income (loss) Total $ 923,000 474,000 449,000 69,300 43,100 114,100 184, 600 411,100 $ 37,900 Req 1A Home Nursing $ 265,000 119,000 146,000 Req 1B 8,200 20,600 40,300 53,000 122, 100 $ 23,900 *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $37,900 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program. Req 2A The…

Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors-home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) Req 1A *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $46,000 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program. Complete this question by entering your answers in the tabs below. Reg 1A The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment…