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Assignment week 4
Financial Healthcare
November 19, 2023
2
Chapter 6: Problem 6.1 a)
What is the value of the cost pool? The cost pool is: $100 000.00 b)
The allocation rate using the patient service revenue as the cost driver: Allocation rate = 100000/5000000 => Allocation rate = $0.02 per patient service The allocation rate using hours of housekeeping services as the cost driver: Allocation rate = 100000/5000 => Allocation rate = $20.00 Per housekeeping hour. Chapter 6: Problem 6.7 a)
The appropriate allocation rates are: General administration allocation rate= General administration cost/Patient service revenue => General administration allocation rate = 4000000/63000000 => General administration allocation rate = $0.0635 per dollar of patient revenue. Maintenance expense allocation rate = Maintenance expense cost/space utilization => Maintenance expense allocation rate = 5000000/805000 => Maintenance expense allocation rate= $6.2111 Per Square feet Employee benefits administration allocation rate = employee benefits cost/number of full time – time employees => Employee benefits administration allocation rate= 4000000/1590 => Employee benefits administration allocation rate= $2515.72 Per full-time employee
3
Chapter 7 Problem 7.1: a)
At breakeven point Total contribution = Total fixed cost If X= Per visit price for breakeven => Total contribution = Total fixed cost => 10000 * (X-5) = 500000 + 50000 => 10000X – 50000 = 550000 => 10000X = 600000 => X= $60.00 For a desired profit of $100 000.00 Total contribution=Total fixed cost + desired profit 10000 * (X-5) = (500000+50000) +100000 => 10000X – 50000 = 650000 => 10000X = 700000 => X=$70 b) Assuming the variable cost per visit is $10.00 Total contribution=Total fixed cost => 10000 * (X-10) = 500000 + 50000 => 10000X – 100000 = 550000 => 10000X = 650000 => X = $65.00 For a desired profit of $100 000.00 Total contribution=Total fixed cost + desired profit
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10000 * (X-10) = (500000+50000) +100000 => 10000X – 100000 = 650000 => 10000X = 750000 => X=$75 7.4
Revenue
variable cost
Income ( Revenue - Variable cost)
Commercial
1000 * 5000 = 5 000 000.00
1000 * 3000 = 3 000
000.00
2 000 000.00
Penncare
4000 * 4500 = 18 000 000.00
4000 * 4000 = 16 000
000.00
2 000 000.00
Medicare
8000 * 7000 = 56 000 000.00
8000 * 2500 = 20 000
000.00
36 000 000.00
Total contribution margin
40 000 000.00
Less fixed cost
38 000 000.00
Net income
2 000 000.00
Related Documents
Related Questions
QUESTION 8
In a hospital the average cost per month is $2.300.000 for 10 patients per day when it is less busy. In the busy period the average cost per month attains $2.800.000 when there are 15 patients per day. Calculate the fixed and variable costs assuming that next month there will be 14 patients per day.a) Variable cost: $2.300.000 and fixed cost: $1.300.000b) Variable cost: $1.400.000 and fixed cost: $1.200.000c) Variable cost: $1.400.000 and fixed cost: $1.300.000d) Variable cost: $1.500.000 and fixed cost: $1.300.000
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Homework i
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Problem 11-22A (Algo) Cost behavior and averaging LO 11-1, 11-2
Janice Huffman has decided to start Jordan Cleaning, a residential housecleaning service company. She is able to rent cleaning
equipment at a cost of $750 per month. Labor costs are expected to be $70 per house cleaned and supplies are expected to cost $7
per house.
Required
a. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned,
assuming that Jordan Cleaning cleans 25, 35, or 45 houses during one month. Is the cost of equipment a fixed or a variable cost?
b. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Jordan
Cleaning cleans 25, 35, or 45 houses during one month. Is the cost of labor a fixed or a variable cost?
c. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Jordan
Cleaning…
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OBJECTIVE 2456
sout cost behavior that you would like to have? Explain.
Problem 3-28 HIGH-LOW METHOD, SCATTERPLOT, REGRESSION
Weber Valley Regional Hospital has collected data on all of its activities for the past 16
months. Data for cardiac nursing care follow:
Y
x
Cost
Hours of Nursing Care
May 2010
$59,600
1,400
June 2010
57,150
1,350
July 2010
61,110
1,460
August 2010
65,800
1,600
(continued)
Chapter 3 Cost Behavior
Y
Cost
x
Hours of Nursing Care
September 2010
69,500
1,700
October 2010
64,250
1,550
November 2010
52,000
1,200
December 2010
66,000
1,600
January 2011
83,000
1,800
February 2011
66,550
1,330
March 2011
79,500
1,700
April 2011
76,000
1,600
May 2011
June 2011
68,500
1,400
73,150
1,550
July 2011
August 2011
73,175
1,505
66,150
1,290
Required:
1. Using the high-low method, calculate the variable rate per hour and the fixed cost
for the nursing care activity.
125
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ER
ES
Study
Question 6
In applying the high-low method, what is the fixed cost?
Month
Miles
January 76000
February 52000
March
66000
April
84000
O$12000
$40000
O$45000
$32000
Total Cost
$122000
110000
n the web and Windows
118000
150000
Click if you would like to Show Work for this question: Open Show Work
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7
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Answer this question general accounting
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Question 16
/1
View Policies
Current Attempt in Progress
If the required direct materials purchases are 32000 pounds, the direct materials required for production is three times
the direct materials purchases, and the beginning direct materials are three and a half times the direct materials
purchases, what are the desired ending direct materials in pounds?
oport
48000
O 32000
O 80000
O 16000
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Chapter 11 & 13 Review G
Saved
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Subr
Palace Company has two service departments and two user departments. The number of employees in each department is:
Personnel
Cafeteria
25
Producing Department A
Producing Department B
067
255
580
The fixed costs of the Personnel Department are allocated on a basis of the number of employees. If these costs are budgeted at $96,280
during a given period, the amount of cost allocated to the Cafeteria under the step method would be:
Multiple Choice
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Introduction te X
Math Fundam x
O The Finance St X
Foundations o x C Seafood - Eat X G
Wakefield, Rhc X
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Chapter 17 Homework
eВook
Show Me How
Costs per Equivalent Unit
The following information concerns production in the Baking Department for December. All direct materials are placed in process at the beginning of production.
ACCOUNT Work In Process-Baking Department
ACCOUNT NO.
Date
Item
Balance
Debit
Credit
Debit
Credit
Dec.
1 Bal., 8,700 units, 2/5 completed
19,140
31 Direct materials, 156,600 units
297,540
316,680
31 Direct labor
82,180
398,860
31 Factory overhead
46,220
445,080
31 Goods finished, 158,700 units
428,316
16,764
31 Bal., ? units, 4/5 completed
* 16,764
a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit answers to the nearest cent.
1. Direct materials cost per equivalent unit
2. Conversion cost…
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Question 18
View Policies
Current Attempt in Progress
E-Flix rents DVDS that are mailed out to customers upon demand. E-Flix has identified three activities involved in getting the videos to its
customers. Information on those activities for the month of July follows:
Estimated
Expected Use of
Cost Drivers
Cost Pools
Cost Drivers
Overhead Cost
Order taking costs
Number of orders
$20,592
187,200 orders
Technology support
Number of minutes
$11,700
234,000 minutes
Picking and shipping
Number of DVDS
$39,624
330,200 DVDS
costs
During July, the Tucker family placed 17 orders consisting of 21 DVDS. Tucker required 7 minutes of tech support. Customers pay $9.00 per
month to rent unlimited DVDS. Using ABC, how much overhead is applied to the Tucker family account for technology support?
O Some other answer
O $1.87
O $0.05
o$0.35
2:28 P
)
10/13/23
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Multiple Choice Question 74
In applying the high-low method, what is the fixed cost?
Month
Miles
Total Cost
January
70000
$92000
February
42000
70000
March
60000
88000
April
82000
120000
O $50000
O $17500
O $32000
$18000
Click if you would like to Show Work for this question: Qpen Sho
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Break even point solve proper
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Question 26
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Question 6 Part 2
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Homework
Exercise 11-31 (Algo) Cost Allocation: Step Method (LO 11-3)
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and
Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and
personnel costs on the basis of labor-hours worked by the employees in each.
eBook
The following data appear in the company records for the current period:
Print
Maintenance
Printing
Developing
4,200
3,100
$11,700
Personnel
Machine-hours
1,400
References
Labor-hours
006
$14,500
006
Department direct costs
$12,800
008
Required:
Allocate the service department costs using the step method, starting with the Maintenance Department (Negative amounts should
be indicated by a minus sign. Do not round intermediate calculations.)
Maintenance
Personnel
Developing
Service department costs
24
(2,800)
12,800
Maintenance
099
(13,360)
Personnel
Total costs…
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Business
AccountingQ&A LibraryAn operations manager narrowed the search for a new facility location to four communities. The annual fixed costs (land, property taxes, insurance, equipment, and buildings) and the variable costs (labor, materials, transportation, and variable overhead) are as follows:Community Fixed Costs per Year Variable Costs per UnitA $150,000 $62B $300,000 $38C $500,000 $24D $600,000 $30Notice that no community dominates the set of alternatives; that is, no community has both the lowest fixed costs and the lowest variable costs per unit. If that were so, that community would be the best location.Step 1. Plot the total cost curves for all the communities on a single graph. Identify on the graph the approximate volume range…
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-/1
Question 12
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Current Attempt in Progress
Thomsen Computer Company produces three products:
Earth, Wind, and Fire. Earth requires 80 machine setups,
Wind requires 60 setups, and Fire requires 180 setups.
Thomsen has identified an activity cost pool with allocated
overhead of $1500000 for which the cost driver is machine
setups. How much overhead is assigned to each product?
Fire
Wind
Earth
$843750
$281250
$375000
$234375
$703125
$312500
$500000
$500000
$500000
$281250
$500000
$718750
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Exercise 1. Classify the below cost on their behavior (Fixed Costs and Variable Costs)
(a) Rent of Factory Building,
(b) Managerial Salaries,
(c)Direct wages,
(d) Direct Materials,
(e) Building Insurance,
(f) Commission of salesman,
(g)Municipal taxes,
(h) Power,
(1) Normal Spoilage,
G) Small tools
Exercise 2
The Information bellow has been taken from production department of XYZ Company for
December is as follows:
Total Costs
Variable Cost
Fixed Cost
Material used in Production
OMR 200000
200000
Labour used
in Production 150000
100000
50000
(Assembly and supervisor)
Production Facilities cost
( 50000
40000
10000
rent general, utilities.)
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PROBLEM 2-24 Variable and Fixed Costs; Subtleties of Direct and Indirect Costs [LO5, LO6]The Central Area Well-Baby Clinic provides a variety of health services to newborn babies and theirparents. The clinic is organized into a number of departments, one of which is the ImmunizationCenter. A number of costs of the clinic and the Immunization Center are listed below.
Example: The cost of polio immunization tabletsa. The salary of the head nurse in the Immunization Center.b. Costs of incidental supplies consumed in the Immunization Center, such as paper towels.c. The cost of lighting and heating the Immunization Center.d. The cost of disposable syringes used in the Immunization Center.e. The salary of the Central Area Well-Baby Clinic’s information systems manager.f. The costs of mailing letters soliciting donations to the Central Area Well-Baby Clinic.g. The wages of nurses who work in the Immunization Center.h. The cost of medical malpractice insurance for the Central Area Well-Baby…
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Please help with 3 thank you
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Chapter 9: Applying Excel
Data
Revenue
Cost of ingredients
Wages and salaries
Utilities
Rent
$16.50 q
$6.25 q
$10,400
$800
+
$0.20 q
$2,200
$600
+
$0.80 q
Miscellaneous
Actual results:
Revenue
$27,920
Cost of ingredients
$11,110
Wages and salaries
$10,130
Utilities
$1,080
Rent
$2,200
Miscellaneous
$2,240
Planning budget activity
1,800 meals served
Actual activity
1,700 meals served
Enter a formula into each of the cells marked with a ? below
Review Problem: Variance Analysis Using a Flexible Budget
Construct a flexible budget performance report
Revenue
and
Actual
Spending
Flexible
Activity
Planning
Results
Variances
Budget
Variances
Budget
Meals served
?
?
?
Revenue
?
?
?
?
?
Expenses:
Cost of ingredients
?
?
?
?
?
Wages and salaries
?
?
?
?
?
?
?
?
?
?
Utilities
?
?
?
?
?
Rent
Miscellaneous
?
?
?
?
?
?
?
?
?
?
Total expenses
Net operating income
?
?
?
?
?
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- ER ES Study Question 6 In applying the high-low method, what is the fixed cost? Month Miles January 76000 February 52000 March 66000 April 84000 O$12000 $40000 O$45000 $32000 Total Cost $122000 110000 n the web and Windows 118000 150000 Click if you would like to Show Work for this question: Open Show Workarrow_forward7arrow_forwardAnswer this question general accountingarrow_forward
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