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partial list of Foothills Medical Center’s costs follows:a. Cost of laundry services for operating room personnelb. Salary of intensive care personnelc. Depreciation on patient roomsd. Cost of blood testse. Nurses’ salariesf. Cost of patient mealsg. Overtime incurred in the Patient Records Department due to a computerfailureh. Operating room supplies used on patients (catheters, sutures, etc.)i. Doctor’s feej. Cost of X-ray testk. Cost of maintaining the staff and visitors’ cafeterial. Cost of drugs used for patientsm. Cost of intravenous solutions used for patientsn. Cost of improvements on the employee parking loto. Salary of the nutritionistp. General maintenance of the hospitalq. Cost of advertising hospital services on televisionr. Cost of new heart wings. Training costs for nursest. Depreciation of X-ray equipmentu. Utility costs of the hospital Instructions1. What would be Foothills Medical Center’s most logical definition for the final cost object? Explain.2. Identify whether…

Assume that the hospital uses the direct method for cost allocation Question: how to solve question a & b ?

A Community health clinic's costs are shown below. What is total average cost per patient? 4,824 Patients Total variable costs $6,375 Total fixed costs ? Variable cost per ? patient Fixed cost per patient $2.40 Total average cost per patient ? Round your answer to two decimal places. Do not round any intermediate calculations.

Compute the linear cost function, relating total overhead costs to physician contact hours, using the representative observations of 200 and 300 hours. Plot the linear cost function. Does the constant component of the cost function represent the fixed overhead costs of Young and Associates? Why?

1. What are the fees for a Basic Exam, Advanced Exam, and a Basic Exam assuming the goal is to cover only variable and fixed direct costs? Assume that the audiology department is allocated $100,000 in total overhead by the clinic, and the department director has allocated $50,000 of this amount to the three services listed above. (To answer this question, assume that the allocation of overhead costs to each service is made on the basis ofnumberof visits.)   2. What are the fees for a Basic Exam, an Advanced Exam, and a Basic Exam assuming the overhead costs must be covered? 7.2 The audiology department at Randall Clinic offers many services to the clinic's patients. The three most common, along with cost and utilization data, are as follows: Copying and distribution of this PDF is prohibited without written permission. For permission, please contact Copyright Clearance Center at www.copyright.com Healthcare Finance Variable Cost Annual Direct Annual Number per Service Fixed Costs of…

Linear cost approximation. Dr. Young, of Young and Associates, LLP, is examining how overhead costs behave as a function of monthly physician contact hours billed to patients. The historical data are as follows:

Assume that Valley Forge Hospital has only the following three payer groups: Payer Number of Average Revenue Cost Admissions Admission PennCare $3,000 Medicare $4,000 Commercial $2,500 1,000 4,000 8,000 per Admission $5,000 $4,500 $7,000 Variable per The hospital's fixed costs are $38 million. a. Using the profit/loss format from our textbook and PowerPoints in this module, determine the hospital's net income, therefore showing your work to demonstrate how you got to the net income answer. b. Assume that half of the 100,000 covered lives in the commercial payer group (above) will be moved into a capitated plan. All utilization and cost data remain the same. What PMPM rate will the hospital have to charge to retain its Part A net income (what you calculated above)?

Can you help with part 4 of this quesstion?  Parts 1, 2, and 3 have been answered.    Pleasant Stay Medical Inc. wishes to determine its product costs. Pleasant Stay offers a variety of medical procedures (operations) that are considered its “products.” The overhead has been separated into three major activities. The annual estimated activity costs and activity bases follow: ActivityBudgeted Activity CostActivity BaseScheduling and admitting$432,000 Number of patientsHousekeeping4,212,000 Number of patient daysNursing5,376,000 Weighted care unitTotal costs$10,020,000 Total “patient days” are determined by multiplying the number of patients by the average length of stay in the hospital. A weighted care unit (wcu) is a measure of nursing effort used to care for patients. There were 192,000 weighted care units estimated for the year. In addition, Pleasant Stay estimated 6,000 patients and 27,000 patient days for the year. (The average patient is expected to have a a little more than a…

ACC5200/Summer21/Chapter 7: Homework Problems 1. Customer profitability analysis Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies. For years, Worley believed that the 8% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown below: Total Activity 4,000 deliveries Total Cost Activity Cost Pool (Activity Measure) Customer deliveries (Number of…

Hi, Could you please help me fill in the missing values and show how you came to the calculation. Thank you.

please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)

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: Home Meals On House- keeping $ 918,000 $ 263,000 $ 400,000 $ 255,000 151,000 104, 000 Total Nursing Wheels Revenues Variable expenses 462,000 456,000 111,000 152,000 200,000 200,000 Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators’ salaries General administrative overhead* 70,500 44,000 114,900 183,600 413,000 8,700 20,500 40,500 52,600 122,300 40,800 8,000 38,800 80,000 167,600 21,000 15,500 35,600 51,000 123,100 Total fixed expenses Net operating income (loss) $ 43,000 $ 29,700 $ 32,400 $(19,100) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's…

Need help with this accounting problem without use Ai

The Housekeeping Services Department of Ruger Clinic, had $100,000 in direct costs during the year. Department                 Revenue                      HK Hours Adult Services             $3,000,000                  1,500 Pediatric Services       $1,500,000                  3,000 Other Services             $  500,000                     500 Total                $5,000,000                  5,000   What is the value of the cost pool? Which of the two cost drivers is better? Patient service revenue or housekeeping hours?  Why?

Assume that Valley Forge Hospital has only the following three payer groups: Number of Average Revenue Payer Cost Admissions Admission PennCare $3,000 Medicare $4,000 Commercial $2,500 1,000 4,000 8,000 per Admission $5,000 $4,500 $7,000 Variable per The hospital's fixed costs are $38 million. c. What overall net income would be produced if the admission rate of the capitated group (from part B above) were reduced from the commercial level (originally listed as $2,500 total from above) by 10 percent? d. For this same capitated group, assuming that utilization reduction also occurs, what overall net income would be produced if the variable cost per admission for this same capitated group were lowered to $2,200 (from the original $2,500 listed above)?

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Problem 4-26A (Algo) Allocating service center costs-step method and direct method LO 4-6 Walton Information Services, Ic., has two service departments: human resources and billing. Walton'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 Legal Resources Billing Health Care Retail Services Number of employees 20 50 207 157 86 $ 6,170,000 $10,700,000 Annual cost* $900,000 $2,110,000 $4,970,000 $5,350,000 $2,970,000 $3,950,000 Annual revenue *This is the operating cost before allocating service department costs. Required a. Allocate service department costs to operating departments, assuming that Walton adopts the step method. The company uses the number of employees as the base for allocating…

Show a detailed, step by step process for the following question below:   “Apollo is a local hospital that offers two types of procedures. Currently, Apollo uses a simple system to calculate the overhead cost per treatment. This is done by taking the total overhead cost and dividing it by the number of treatments. Using this method, the full cost for each procedure is shown below:   Procedure X Y Direct costs per procedure £2,610 £1,560 Full cost per procedure £2,831 £1,781   Recently, another competitor has implemented activity based costing (ABC). This has led the finance director to consider whether this alternative costing technique would bring any benefits. She has obtained an analysis of Apollo’s total overheads for the last year and some additional data, all of which is shown below:”   Cost Cost driver    Administrative costs Administrative time per procedure £935,080 Nursing costs Length of patient stay £3,127,808 Catering…

Show a detailed, step by step process for the following question below:   “Apollo is a local hospital that offers two types of procedures. Currently, Apollo uses a simple system to calculate the overhead cost per treatment. This is done by taking the total overhead cost and dividing it by the number of treatments. Using this method, the full cost for each procedure is shown below:   Procedure X Y Direct costs per procedure £2,610 £1,560 Full cost per procedure £2,831 £1,781   Recently, another competitor has implemented activity based costing (ABC). This has led the finance director to consider whether this alternative costing technique would bring any benefits. She has obtained an analysis of Apollo’s total overheads for the last year and some additional data, all of which is shown below:”   Cost Cost driver    Administrative costs Administrative time per procedure £935,080 Nursing costs Length of patient stay £3,127,808 Catering…

Using the single-rate method, allocate gift-wrapping costs to different departments in the following way: Q. Calculate the budgeted rate based on the budgeted number of gifts to be wrapped and allocate costs based on the budgeted use (of gift-wrapping services).